MBS Live Recap: Lowest Yields of The Month

June began with yields plateauing after rising from the Italy-inspired lows of late May.  10yr yields managed to avoid breaking above 3% until last week's much-anticipated Fed Day.  Even then, the Fed and the ECB ultimately gave way to the slow, steady rally that's persisted into the current week.

Until today, that rally was nice, but forgettable, as it merely got us back in line with the lowest levels of the narrow range seen so far this month.  Today's rally is arguably forgettable as well.  It hasn't marked a meaningful departure from the pace of the past few sessions.  In fact, the domestic trading hours were just as boring as yesterday's.  

The only difference today is that we started with a bit of a lead thanks to overnight trade war headlines.  As soon as Chinese equities markets closed for the day, US equities markets and bond yields began moving gradually higher (emphasis on "gradual").  This was never enough to erode the overnight gains, but it was enough to rob the day of any fanfare typically reserved for "the best day of the month."

Bottom line: same sideways grind, but with a head start thanks to overnight volatility.