MBS RECAP: Rangebound Improvements

It was a fairly boring day for bond markets both at home and abroad.  This, despite headlines surrounding the Greek debt situation that seemingly suggest otherwise.  Part of the reason could be the the general level of resignation that exists for more of the same canned newswires with alternating brinksmanship between Greece and it's creditors.

Greece: 'we made good progress today, hopefully can agree soon.'

Europe: 'still very far off from an agreement, Greece must agree to x,y, and z.'

Greece: 'Under no circumstances can Greece agree to x,y,z.'

Europe: 'if Greece doesn't agree to x,y,z, then there won't be an agreement.'

Greece: 'if Europe won't work with us just a little bit, they are torpedoing the entire Eurozone, and they hate us here in Greece and just want us to be miserable.'

And so on, and so on...

The fact is that the situation is very real for both sides, but it's far more real for Greece.  That's wholly evident in the volatility surrounding Greek bond markets and the banking system in general.   

Does this not have an effect on the rest of the world's bond markets?  Indeed it does, but to reiterate, there is an unhealthy level of focus on Greece as THE one and only catalyst for market movement right now.  It's not, and it won't ever be.  It will provide nudges that act as course corrections for broader momentum--sometimes the biggest nudge of any given day--but not much more. 

In the broader sense, bond markets are consolidating in the middle of recent highs (June 10th) and lows (late last week).  Greece is all over the board by comparison.