Slow Start With Some Resilience After AM Weakness
Volume was "summertime low," which is par for the course on Mondays in July. As always, lighter volume and/or liquidity make it easier for any given trade to have a bigger impact on trading levels than it otherwise would. With this backdrop in place, overnight weakness pushed 10yr yields roughly 8bps higher by the domestic open. Buyers fought back but refused to chase below the 2.80 technical level. MBS outperformed in general with 4.5 coupons coming very close to positive territory as of the 4pm hour.
moderately weaker overnight with 10yr yields up 8bps at 2.836. MBS are outperforming with 4.5 coupons down 5 ticks (.16) at 100-21 (100.65).
Both MBS and Treasuries are off the weakest levels. 4.5 coupons are down only an eighth on the day. 10yr yields are now up 6.2bps at 2.816.
Little-changed since the last update. Very slow overall. 10yr now up only 5.5bps on the day. MBS still down an eighth.