Uneventful Start. Decent Gains After 20yr Bond Auction

The holiday-shortened trading week is off to exactly the sort of uneventful start we would expect given the lack of meaningful market movers on the calendar.  Today's 20yr bond auction was one of the only events that had a chance to have an impact.  The slightly stronger auction results ended up having a modestly positive impact on bonds, quickly helping Treasuries exchange a few bps of weakness for a few bps of strength.  MBS moved from up about an eighth of a point and then held perfectly flat for the rest of the day.

Market Movement Recap
09:39 AM

Slightly weaker overnight. Volatility in a narrow range.  10yr up less than 2bps at 4.457.  MBS down 5 ticks (.16).

12:59 PM

Slightly weaker ahead of the auction with MBS down 3 ticks from intraday highs and 5 ticks (.16) on the day.

03:03 PM

Solid gains after auction and holding steady since then.  MBS up 2 ticks (.06) and 10yr yields down 1.7bps at 4.422.