As expected, today's congressional testimony from Fed Chair Yellen was, by far, the biggest market mover in the room. The volume and movement at 10am dwarfed that of the 8:30am Retail Sales numbers. All that having been said, the net effect is less than exciting and not at all far from yesterday's latest levels.
In other words, bonds were up and down following Yellen, but movement cancelled itself out. There were no meaningful takeaways or surprises in the testimony or Q&A.
Markets were ostensibly holding out for something more dovish in the initial remarks released at 10am. When they didn't get it, bonds sold-off until hitting technical support at 2.57% in 10yr yields. After bouncing there, MBS and Treasuries are both close to unchanged levels.
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