Bonds Battle Back After Threatening The Range Yet Again

If yesterday looked like a challenge to the prevailing trading range followed by a friendly bounce, today's selling spree said "hold my beer."  Overnight inflation data in the UK send the free world's bond yields lurching higher moderately but abruptly.  Domestic hours were spent undoing the damage, but not before 10yr yields were well above anything that might be considered a ceiling in the 3.4-3.6 range.  Interestingly enough, yields ended up safely below all of those levels by the close.  Verdict? Nothing to see here.  Waiting for something more significant.

Market Movement Recap
09:02 AM

sharply weaker at 2am in response to UK inflation data.  Sideways since then.  10yr up 3.3bps at at 3.61%.  MBS down a quarter point.

11:27 AM

Giving up some earlier gains in Treasuries. 10yr now up 5.2bps at 3.629.  MBS down a quarter point

01:09 PM

Decent 20yr auction. Modest recovery.  10yr yields up only 3bps on the day at 3.608. MBS are down only 6 ticks (.19) 

04:29 PM

Best levels of the day in after hours trading.  10yr up only 1.4bps at 3.591.  MBS down 1 tick (0.03).