Today's session barely had a pulse. Weather is nice. It's the day after a 3-day weekend, and there was nothing meaningful on the event calendar. That made today a prime candidate for a 4-day weekend in financial markets. Not only does this affect participation due to absences, but also from the simple expectation of absences.
The overnight session started off with mild weakness during Asian hours, but European markets helped US rates bounce back. In fact it wasn't until European markets closed that Treasuries and MBS finally exited their small rallies and went sideways for the rest of the day. Apart from Europe, equities markets exhibited some correlation as well (i.e. stock prices following bond yields).
MBS held very modest gains. Treasuries did a bit better, falling 3.4bps from Thursday's latest levels and heading out near the lows of the day.
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