Issuance and Holiday Hangover Hitting Bonds

Bonds were decently weaker on the first day back after Labor Day weekend.  Futures and overseas markets were not on holiday and they spent Monday building in some of the weakness seen today's opening levels.  In fact, from those opening levels, today's selling was fairly minimal, or at least fairly gradual.  One of the only obvious measurable culprits was a glut of corporate bond issuance.  This is always a consideration in the background, but it tends to push yields higher when issuance is larger than expected.  The long weekend served to concentrate the dose.

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Market Movement Recap
09:23 AM

Weaker overnight, slightly recovery after Fed's Waller, but settlings at opening levels again. 10yr up 5bps at 4.23 and MBS down just over a quarter point.

11:09 AM

slightly weaker into 10am hour, but stabilizing now.  10s up 6.6bps at 4.247 and MBS down roughly a quarter point.

02:13 PM

Weakest levels of the day with MBS down more than 3/8ths and 10yr yields up 8.5bps at 4.266.

04:33 PM

Heading out near weakest levels with MBS down roughly half a point and 10s up 8.7bps at 4.268.