This happens from time to time on Mondays.  Either due to a holiday overseas or some other distraction, a data-free Monday ends up being a complete dud in terms of volume and volatility in the US trading session.  Such was the case today, with the most obvious culprit being the market closure (scheduled) in London--a critical hub for overnight trading activity in Europe, at least as far as US Treasuries are concerned.

Case in point, this was the lowest volume day of the year for 10yr Treasury futures.  Amid light volume, any given trader has a bigger-than-normal impact on prices/yields because their dollars constitute a bigger-than-normal piece of the day's pie.  Even with that in mind, the trading range was quite narrow.  The illiquidity allowed the 8:20am CME crowd to have a visibly positive impact on rates in the morning, but once that initial pop was digested, the remaining traders took yields right back to 'unchanged.'  

10yr yields would go on to hold inside a 1bp range through the close and Fannie 3.5's never strayed more than 2/32nds (0.06 in terms of PRICE) from unchanged after the morning volatility passed.  For all intents and purposes, we're waiting until tomorrow to see how the week truly begins.  


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
99-09 : +0-00
Treasuries
10 YR
2.9516 : +0.0076
Pricing as of 5/7/18 4:35PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:32AM  :  Very Quiet So Far; Holding Near Unchanged

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "It's not just you, and especially if we're talking about jumbo and/or ARMs"
Jennifer Turner  :  "Is it just me or is there a greater discrepancy in rates between lenders now than there has been in a long time?"
Ted Rood  :  "Think it's safe to say that CFPB could make ANYONE look discriminatory if they put their mind to it."