Bonds started the holiday-shortened week at moderately higher yields, but rallied several bps during European hours.  8:30am econ data pushed back, erasing a 4bp gain, but the weakness didn't last long.  MBS and Treasuries are both at the best levels of the day as the domestic session hits its stride--an accomplishment made all the more impressive given the headwinds from data and elevated corporate bond issuance.

The gains mean 10yr yields are challenging the lower boundary of the prevailing range.  Additional gains would increasingly make 3.84% look a double top on May 26th and then on 3 consecutive days last week.

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