Should Have Taken The 3-Day Weekend!
Every so often, the bond market has a Monday that does absolutely nothing at all to change the prevailing narrative or introduce any new considerations. When these Mondays are especially narrow in range and low in volume, they may as well have been an unofficial 3rd day of the weekend. While we could argue that bonds covered enough ground to have served a bullish purpose, the gains were essentially an affirmation of a sideways range and a correction to pre-weekend position squaring (even if said position squaring was catalyzed by data).
Modestly stronger overnight and little-changed now. 10yr yields are down almost 4bps at 3.53 and MBS are up nearly a quarter point.
Mostly sideways with a bit of a rally in Treasuries at 1030am. 10yr down 5bps at 3.517. MBS up just under a quarter point.
ZZZZzzzz.... That's the technical term for what we're seeing in the bond market this afternoon. Effectively unchanged from the most recent update, and from 11am in general, for that matter.