Rising Rates Reiterate Relevance of The Range

Bonds were in weaker shape right from the start.  Holiday closures in London made for lower volume.  Lower volume made it easier for European trading to push yields higher.  But it was the hefty slate of corporate issuance that did most of the damage early in the day.  Bonds attempted to rally at the 9:30am NYSE open as bank stocks spent 3 hours moving lower, but everything bounced together just before 1pm.  All told, it was an uneventful placeholder of a trading session.  It happened to be moderately weaker, unfortunately, but that only reiterated the relevance of the range.

Market Movement Recap
09:24 AM

modestly weaker overnight with additional selling early.  10yr up 7.6bps at 3.51 and MBS down 10 ticks (.31).

11:56 AM

 Modest recovery or at least stability in AM hours.  10yr up 6bps at 3.496.  MBS down a quarter point.

02:29 PM

Near the weakest levels with MBS down 3/8ths and 10yr up 8bps at 3.513.

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