The Most Boring Trading Day in Weeks

Bond market volatility exploded on March 10th after the failure of Silicon Valley Bank.  There hasn't really been a day since then that would qualify as "boring," but if we had to pick one, today stood out.  It had the narrowest trading range of any day in weeks.  After losing a bit of ground early, momentum was decidedly 'sideways.'  There was no strong correlation with the stock market (a hallmark of recent trading patterns).  And there were no big ticket reports or events that did anything to change the narrative.  All in all, it was a placeholder in the quest for more relevant inputs.

Econ Data / Events
    • Case Shiller Home Prices y/y
      • 2.5 vs 2.5 f'cast, 4.6 prev
    • FHFA Home Prices y/y
      • 5.3 vs 6.7 prev
    • FHFA Home Prices m/m
      • +0.2 vs -0.1 f'cast
    • Consumer Confidence
      • 104.2 vs 101.0 f'cast, 103.4 prev

Market Movement Recap
09:06 AM

Bonds rallied back to unchanged levels after weakness in Europe.  Slipping slightly now. 10yr up 1.3bps at 3.553.  MBS down 1 tick (.03).

10:23 AM

Losing a bit of ground after a stronger Consumer Confidence report.  10yr up 3.3bpsa at 3.573.  MBS down just over an eighth of a point. 

12:27 PM

MBS drifting down to lowest levels of the morning.  See the alert for more.

01:09 PM

Additional weakness heading into the auction, but recovering a bit afterward. MBS down only an eighth.  10yr up 1.7bps at 3.556, down from highs of 3.577.

04:25 PM

Weakest levels in Treasuries with 10yr yields up 3.4bps at 3.573.  MBS down 6 ticks (.16)

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