Bonds rallied modestly in the overnight session. There were no notable spikes in volume or volatility--just a gradual grind that took 10yr yields roughly 2bps lower by 8am ET. Volume picked up at the 8:20am CME open (as it usually does) and this time it brought more sellers. The net effect is a return to unchanged levels, for the most part. There's some data on deck with S&P PMIs, Consumer Sentiment, and Leading Indicators, but not of these are top tier market movers. The rest of the day's momentum is more likely to be dictated by pre-weekend position squaring unless there's an unexpected geopolitical development.
Calmly Holding in Super Strong Territory
Calmly Holding in Super Strong Territory
MBS may not be quite as high as they were yesterday, but in the bigger picture, today’s levels are right in line with the best we’ve seen in more than 3 years. More impo…