Quietest Trading Day of The Year

Quietest Trading Day of The Year

We've seen other days this year where bonds have traded in a similarly narrow range, but none of those days boasted the exceptionally low volume seen today.  Even without it being an early close, it is still on track to being the lowest volume day of the year.  There was no reaction to the home price data this morning (nor would we expect that, even on a busy day), but the 2yr Treasury auction produced a bit of a response in shorter-term Treasuries.  10yr yields didn't react much, but they were able to turn a microscopic loss into an improvement of similar proportions (i.e. less than 1bp lower on the day).