Here we are in the last week of May and things finally seem to be going our way (knock on wood) with respect to bond markets putting some more consistent green on the screen.  At least they SORT OF seem to be going our way in a very unsatisfying, general sense. 

Why so unsatisfying

There's nothing too complicated here, really.  While we may be stringing together more green days compared to red days of late, precious little has been done to challenge May's range.  Until that happens, the outlook is the same as it ever was but perhaps with a slightly higher dose of latent optimism. 

Now you may ask yourself, 'well... How did we get here?'  If there's green on the screen, why shouldn't we be happier about it?

The main reason is that it's here due to a confluence of events.  We can enumerate them if we like.  They include an ebb in May's new debt supply--both corporate and sovereign, the onset of month-end tradeflow considerations, a technical correction/consolidation in European and US debt, favorable currency movement, tradeflow exhaustion from the early May run up in yields, and whatever basket of fundamental economic events you'd like to sort through (we don't need those to justify the green).  Long story short, it's the consolidation that we began to entertain several Thursdays ago that never materialized into a full-fledged bounce.  Same idea this time, but with better execution. 

It's now the early June trading that matters most.


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
101-05 : +0-00
FNMA 3.5
104-11 : +0-00
FNMA 4.0
106-21 : +0-00
Treasuries
2 YR
0.6520 : +0.0030
10 YR
2.1407 : +0.0107
30 YR
2.8800 : +0.0120
Pricing as of 5/28/15 7:30AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Thursday, May 28
8:30 Initial Jobless Claims (k)* w/e 270 274
8:30 Continued jobless claims (ml)* w/e 2.208 2.211
13:00 7-Yr Note Auction (bl)* 29