Once again, bond markets came into the domestic session at slightly stronger levels and have more or less flat-lined.  Fannie 3.5s have held inside a 3/32nds range and 10yr yields have gone all morning without stepping outside a 1.5bp range (2.542 - 2.556).

The strongest trading occurred overnight as European data was slightly weaker.  Comments from European Central Bankers and geopolitical risk both played mild roles in hindering stocks and helping bonds.  German Bunds hit their best levels just after 4am along with US Treasuries, and both have been moving just slightly weaker ever since.

The economic data was a non-event as expected--at least in terms of market movement.  One of the reports is still potentially interesting due to its industry connection.  FHFA's home price data showed a steep decline in the rate of annual appreciation (4.4% in July vs 5.1% in June).  Month over month, appreciation continues, but it slowed to +0.1% in July vs +0.3% in June.