After seeing today's trading--especially when we consider it in the context of recent technical levels and yesterday's bounce around 2.25% in 10yr yields--it seems increasingly clear that bonds are doing that thing they sometimes do as the weekend is approaching.  Namely, they've entered a narrow, sideways range, and they look none too interested in breaking higher or lower unless given a compelling reason. 

In the current case, the range is roughly 2.25-2.27.  We spent a few moments trading just slightly lower today, but those were the exceptions to the rule during domestic hours.  

The morning economic data was irrelevant (no one cares about Jobless Claims any more), and the afternoon's Treasury auction was taken in stride (slightly less than "strong" in terms of the auction results, followed by a modicum of bond market weakness into the close).

If anything is going to push us out of this narrow range, it's either not showing on the event calendar, or it will take the form of an unexpectedly strong/weak result in one of tomorrow morning's data points.  Even then, there's a wider range that would still be OK to hold in terms of conveying an absence of drama heading into the weekend (2.22-2.305).


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
103-02 : -0-01
Treasuries
10 YR
2.2536 : -0.0124
Pricing as of 5/25/17 4:54PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:54PM  :  7yr Auction Preview
10:14AM  :  Bonds Unchanged; Holding a Narrow, Consolidative Range

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "B-, but respectable given the unchanged levels on the day."
Matthew Graham  :  "RTRS - PRIMARY DEALERS TAKE 21.59 PCT OF U.S. 7-YEAR NOTES SALE, DIRECT 17.17 PCT AND INDIRECT 61.24 PCT"
Matthew Graham  :  "RTRS - U.S. 7-YEAR NOTES BID-TO-COVER RATIO 2.54, NON-COMP BIDS $9.00 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $28 BLN 7-YEAR NOTES AT HIGH YIELD 2.060 PCT, AWARDS 74.08 PCT OF BIDS AT HIGH"
Victor Mendoza  :  "When will Trump be back so we can get MBS favorable headlines again?"