Mostly Flat After Initial Weakness

There's a risk that a theme will emerge in the coming days, but a theme that only matters to people who write daily commentary on the bond market.  It involves an absence of new, interesting things to say as well as plenty of repetition. If today was any indication, the bond market's base case for this week is to play the "11 day weekend" game that we joked about last week.  It looked like we might actually have some volatility earlier in the session.  Bonds sold off modestly at the 8:20am CME open, but the damage was limited to roughly 3bps in 10yr yields and much less than that by the 3pm CME close.

Market Movement Recap
09:46 AM

Unchanged overnight, but sellers were lined up for the 8:20am CME open.  10yr now up 2bps and MBS down 2 ticks (.06).

12:43 PM

Off the weakest levels and flat.  MBS unchanged and 10yr up 1.6bps at 4.438

03:11 PM

Little changed.  MBS down 1 tick (.03) and 10yr up 1.4bps at 4.437

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