Benchmarks Lose Bid. Rates Meander Higher. Reprices Reported

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Apathy Returns. Benchmark Yields Meandering Higher: Unfortunately the defensive nature we expected to see heading into this rates rally is becoming more obvious as we inch closer to the long weekend ahead. Flows are very mixed and volume has really tapered off since the flurry of activity we enjoyed this morning, but it's clear there is an apathetic attitude toward chasing this rally beyond the cluster of technical resistance that surrounds 3.28% - 3.30% in 10s. Consequently, after a round of profit taking, benchmark TSY yields are drifting higher in an illiquid environment. 

The 10 year note is up to 3.321% after touching 3.257% just before 11am. The FNCL 4.5 is 8/32 off its morning high of 102-27.

REPRICES FOR THE WORSE HAVE BEEN REPORTED