MBS RECAP: Calm, Resilient Day Maintains Calm, Resilient Week (and month)

In the shadow of October 15th--by some measures, the most volatile day in the history of Treasury trading--everything that's followed has been exceedingly tame by comparison.  The correction leading back toward slightly higher rates was mechanical and non-threatening.  And now November is slipping away with mortgage rates having held 4.0% the entire time and 10yr yields staying in the 2.3's. 

Today's session never had much of a chance to break the bigger-picture mold.  To end the week on anything other than a sideways note, we would have needed to see such a big rally or sell-off that it wouldn't have made any sense in the current context.

Overnight headlines from Draghi helped a bit and China's rate cut hurt a bit, but bonds ground to stronger levels very slowly.  It's tempting to say that suggests a positive theme, but we ended up seeing just as much resistance to gains at 2.31% (10yr yields) as we saw support for losses at 2.36%.  That's been the entire range this week since 9am Monday.