Range Trading Settling in For Long(er) Haul
With no significant bond market volatility in response to this week's Fed announcement. The question of "where do we go now" remains. The answer remains as well. Until further notice, it's "sideways!"
20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)
Consumer Sentiment 78.9 vs 75.0 f'cast, 74.1 prev
Bonds were mostly flat during Asian hours but rallied during European hours to hit the domestic session in slightly stronger territory. 10yr yields are down 1.6bps at .672 and 2.0 UMBS are up 1 tick at 102.98. Stocks are flat.
AM weakness in MBS subsided by noon. Treasury yields managed to find a ceiling without moving too far into negative territory. Both sides of the market are now positive again with some support from stock market weakness.