Calm Start Even if Modestly Weaker

Calm Start Even if Modestly Weaker The day before and/or after a 3-day weekend is more volatile than the average weekend-adjacent trading day. Last Friday fit that bill but today could have been mistaken for a summertime Monday (despite being a wintertime Tuesday). There were no significant reports and the available Fed comments weren't actionable.  After nearly touching 4.0% in the overnight session, 10yr yields climbed slowly to 4.06 by 10am and then held mostly sideways through the close.  Considering the scope of last week's rally, a "mostly sideways" day is a victory. On a cautionary note, the absence of follow-through and the overnight bounce underscore resistance potential near present levels. Econ Data / Events NY Fed Manufacturing 7.1 vs 7.7 prev Market Movement Recap 08:43 AM Modestly stronger overnight. MBS up 1 tick (.03) and 10yr down 1.4bps at 4.036 11:20 AM weaker in the early trading. MBS down 1 tick (.03) and 10yr up 0.7bps at 4.055 01:33 PM Weakest levels. MBS down 2 ticks (.06) and 10yr up 1bp at 4.058 04:26 PM heading out fairly flat. MBS down 1 tick (.03) and 10yr up 1.1bps at 4.059