Modest Gains. No Particular Reason

The week got off to a slow start as far as the bond market was concerned.  Volume was the lowest of the year so far, even if only by a small margin.  Volatility was also muted, at best.  The overnight session provided modest gains and about half of the gains stuck around through the close.  Even so, the improvement wasn't remotely enough to change the prevailing landscape in which bonds are in a modest uptrend in search of a short-term ceiling from which to carve out a broader sideways set-up for the more important events in the next 3 weeks.

Econ Data / Events
    • Existing Home Sales
      • 3.78m vs 3.82m f'cast, 3.82m prev
    • Consumer Sentiment
      • 78.8 vs 70.0 f'cast, 69.7 prev
    • 1yr inflation expectations
      • down 0.2%
    • 5yr inflation expectations
      • down 0.1%
Market Movement Recap
09:48 AM

Moderately stronger overnight. 10yr down 4bps at 4.09 and MBS up nearly a quarter point.

01:32 PM

10yr yields have drifted up from lows of 4.075 to 4.101 (still down 2.9bps on the day).  MBS still up 5 ticks (.16), but down an eighth from the highs.

03:23 PM

More losses into 2pm, but off the weakest levels at the 3pm CME close.  10yr down 2.9bps at 4.103.  MBS up an eighth on the day.