Nice Recovery But Resistance Remains

Rates were under pressure overnight with 10yr hitting the highest yields in more than 2 weeks.  Since then, bonds have surged back into stronger territory but remain more or less blocked by the same old floor. 

Econ Data / Events
Market Movement Recap
08:16 AM

Bond weakness continued during Asian hours, but reversed course in the European session.  Domestic trading is starting out just barely stronger for bonds and weaker for stocks.

09:16 AM

8:20am CME open brought buyers, plain and simple.  It wasn't huge, but it was enough for a few bps of strength in Treasuries and nearly an eighth of a point of gains in MBS.  Stocks aren't doing anything interesting yet.  No other market movers in play.  

01:02 PM

MBS were already at best levels, but Treasuries are heading back in that direction after a strong 7yr auction.  MBS up a quarter point.  10yr yield down nearly 3bps.  Stocks have been rising, but still a hair weaker on the day.

03:37 PM

Best levels of the day now, potentially benefiting from stock market losses.  10yr yields challenging the .58% floor (but not clearly breaking it).  2.0 UMBS up a quarter point at 103.125.