Reinforcing The Range as Trading Slowly Resumes

Bonds were effectively closed for a 4-day weekend starting with Thanksgiving last Thursday.  True, Friday was technically open for half a day, but volume and participation were so light as to make any of the movement questionable.  This is typical of any Friday after Thanksgiving.

The following Monday (or "today" in today's case) tends to be a transitional day with plenty of holiday vibes intact but stronger participation compared to the previous trading session.  That has been true so far today.  Bonds were stronger during Asian market hours due to covid-related protests in China, but have been weakening very gradually since the start of European trading.

There's little on the domestic calendar to offer guidance apart from a few Fed speakers saying the same things they said last week. For now, the net effect is that yields are shying away from a potential range breakout suggested by earlier trading.  In terms of the 10yr Treasury, 3.68% is the relevant floor for now.  Yields spent a few hours trading below that earlier and are now back inside the range as domestic trading activity ramps up.