Bonds Finally Have a Boring Day
10yr yields traded in a range of less than 3bps during the domestic session today. From 10:30am on, that range narrowed to only 1bp. We haven't had a day like this in a while--3+ weeks at the very least. When things are flat and boring, there's not much to say that hasn't already been said this morning.
Fed MBS Buying 10am, 1130am, 1pm
Jobless Claims 348k vs 363k f'cast, 377k prev
Philly Fed Index 19.4 vs 23.0 f'cast, 21.9 prev
Stronger in Europe after opening flat in Asia. Domestic hours have gone to sellers. Data didn't have an impact. Technical resistance in play at 1.22+ in 10yr. Currently up to 1.252%, but still 1bp lower on the day. MBS are effectively unchanged at 101.34 (101-11).
Treasuries stabilized after 10am and MBS have been recovering slowly. Everything has taken place inside a broader, narrow, sideways range. Very quiet, range-bound session. MBS up an eighth of a point. 10yr yields down 2bps at 1.24%
MBS dialing back from best levels a bit, but 2.0 coupons are still 0.06 higher (+2 ticks) on the day at 101.41 (101-13). 10yr yields are up 1.3bps at 1.247%. Not reading too much into anything in the past 30 minutes.