Rarely do we see such a well-behaved and long-lasting consolidation trend in bond markets.  This refers to a series of higher lows and lower highs.  We can draw trendlines for those lows and highs based on intraday trading levels or on the "confirmed" closing levels.  (Read more on "confirmation" as it related to technical analysis HERE).  

The following chart includes both of those sets of lines.  Both share the exact same slopes.  In other words, this consolidation is perfectly flat no matter how you slice it.  Other technical studies (like the slow and fast stochastics in the lower section of the chart--both momentum metrics) only adds to the sense of "SIDEWAYS!"  Both are in the dead center of their respective "overbought/oversold" ranges, meaning that both short and long-term momentum are completely neutral.

2017-2-23 Central

There are no big ticket events on the calendar today.  The end of the auction cycle is one potential for a shift in tradeflows though.  That occurs at 1pm with the 7yr Treasury auction.  Even then, it looks like we'll be waiting for a confirmed break of the consolidation trend before it makes sense to get too optimistic or concerned.


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 3.5
102-12 : +0-04
Treasuries
10 YR
2.3880 : -0.0300
Pricing as of 2/23/17 8:31AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Thursday, Feb 23
8:30 Initial Jobless Claims (k)* w/e 241 239
9:00 Monthly Home Price mm (%) Dec 0.5
13:00 7-Yr Note Auction (bl)* 28