In-Range PM Weakness

In-Range PM Weakness Viewed under a microscope, it may have seemed like today was a relatively volatile session for the bond market.  Weaker opening levels in Treasuries gave way to a mid-day rally that nearly got rates back to unchanged levels. But the afternoon saw steady selling that took bonds to their weakest levels of the session. In the bigger picture, this was a non-event as it leaves trading levels well within the prevailing range. Additionally, there were no compelling justifications for the move unless we want to continue to force the narrative of higher stocks prices leading to higher bond yields (where the correlation has been anything but reliable). Econ Data / Events MBA Purchase Index (Feb)/20 149.7 vs -- f'cast, 157.1 prev MBA Refi Index (Feb)/20 1432.9 vs -- f'cast, 1375.9 prev Market Movement Recap 08:58 AM Steadily but modestly weaker overnight. MBS down only 1 tick (.03) and 10yr up 1.5bps at 4.05 11:31 AM MBS unchanged and 10yr up less than 1bp at 4.042 01:46 PM MBS down 1 tick (.03) and 10yr up 0.6bps at 4.041