The week began with a perfectly normal example of a summertime Monday with lighter volume, no major movement, and trading levels remaining well inside the range of the past few sessions. Bonds started fairly flat but improved at the 8:20am CME open (movement surrounding opening bells = another hallmark of lighter summertime trading). Gains continued at a modest pace despite Treasury auctions. Perhaps bonds are having a ceiling feeling as long as this week's data plays ball?
Flat to slightly weaker overnight. Friendly bounce at 8:20am CME open. 10yr down 1.1bps at 4.204. MBS up an eighth of a point.
Flat through the uneventful 5yr Treasury auction. 10yr down 1.7bps at 4.419. MBS up 3 ticks (.09).
Best levels of the day with MBS up 7 ticks (.22) and 10yr yields down 3.5bps at 4.401.