With today continuing yesterday's tradition of offering very little by way of scheduled events, bond markets must look elsewhere for cues. Actually, that's not really a fair conclusion considering bond markets haven't really been paying much attention to scheduled economic data in the first place. So let's say this: with or without scheduled data, bond markets are taking cues from the same old places.
These include the stock market and European markets of late. Both are being helpful today. Stocks accelerated lower fairly quickly at 9:30am and European markets were supportive all night after weaker economic data.
MBS opened just slightly stronger and while they haven't been able to keep pace with the Treasury rally, they're still nearly a quarter point higher on the day. 10yr yields are testing an important technical level at 2.57. If today is anything like yesterday in terms of European influence, the positivity could get more challenging after 12 noon when EU markets close.
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