Ultimately Flat After Options-Driven Volatility

Treasuries continued in the same sideways holding pattern seen over the past 4 trading sessions. This generally mirrors a holding pattern in certain tech companies' credit risk metrics. In short, bonds currently have nothing better to do than wait and see if tech is experiencing some kind of true inflection point or just a false alarm. Today was set to be especially boring as a result, but there was some afternoon volatility surrounding the options expiration cut-off (which affected both Treasuries and stocks). Even then, the net effect of that volatility was less than 1.5bps of weakness in 10yr yields (5.124 after the dust settled versus 5.112 before the spike).