Modest Relief Rally as Headline Risk Comes and Goes

Unlike yesterday, bonds didn't have any market moving economic reports to provide guidance in the morning.  Instead, traders were a bit apprehensive ahead of the SINTRA conference in Europe as the heads of the world's two largest central banks were slated to comment on monetary policy (jargon translation: "headline risk"). As the headline risk faded (Powell and Lagarde didn't say anything too scary), bond buyers filed back into the market, ultimately ushering yields to new lows in the afternoon hours.

Econ Data / Events
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Market Movement Recap
09:57 AM

Slightly stronger overnight, but losing some ground into domestic hours.  10yr still down 2.2bps at 3.75.  MBS still up 2 ticks (.06).

12:11 PM

Best levels of the day.  MBS up nearly a quarter point.  10yr down 4.3bps at 3.729.

01:09 PM

Reasonably strong 7yr auction.  10yr yield down 5.5bps at 3.717.  MBS up 6 ticks (.19).

03:56 PM

Sideways at the same levels from the last update.  MBS up 6 ticks (.19) and 10yr yields down 5.5bps at 3.717.

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