MBS Live Recap: Bonds Battle Back to Unchanged in Narrow Range

Without any major events or data on the econ calendar, it was a calm and relatively inconsequential day for bond markets.  Yields stayed (mostly) inside the two narrowest technical levels from Friday afternoon (2.80% and 2.76%), but that wasn't looking like a done deal in the late morning hours.

Treasuries were slightly weaker overnight and continued losing ground at the NYSE open in concert with an uptick in stocks.  But before stocks turned the corner, bonds decided they'd had enough selling right after yields broke above the 2.80% technical level, and began falling heading into the afternoon.

With that, we'd seen what was perhaps the only significant development of the day for bonds.  Holding under that technical ceiling--especially as stocks continued to rise--is worth something, even if it's only a small something.  Overall, the ranges were narrow enough and volumes were low enough that we shouldn't read too much into today.  Bigger moves are likely on the horizon by the time we get the all-important CPI data on Wednesday, if not before.