Volatility Picked Up After a Slow Start

Volatility Picked Up After a Slow Start This morning, more than halfway through the international trading day, bonds were on track for the narrowest trading range since February 24th. The low volatility didn't last. Sellers surfaced in response to several war-related headlines. Bond yields followed oil prices higher from 9am through 1pm ET.  That said, it was still a fairly light day of movement in bonds with MBS only losing about an eighth of a point depending on when you look and 10yr yields up 3bps at 4.31+ in the final hour of trading.  Econ Data / Events Continued Claims (Apr)/04 1818.0K vs 1810K f'cast, 1794K prev Jobless Claims (Apr)/11 207.0K vs 215K f'cast, 219K prev Philly Fed Business Index (Apr) 26.7 vs 10 f'cast, 18.1 prev Philly Fed Prices Paid (Apr) 59.30 vs -- f'cast, 44.70 prev Market Movement Recap 08:30 AM Giving up overnight gains before data and no change since. MBS unchanged and 10yr down half a bp at 4.279 (up from lows of 4.265). 10:04 AM 10yr yields moved up 1bp back to unchanged levels of 4.281 and MBS are now down 1 tick (.03) 01:16 PM MBS down an eighth. Lows of the day. 10yr up 3.1bps at 4.315. Highs of the day. 03:43 PM Flat afternoon.  MBS down 3 ticks (.09) and 10yr up 2.4bps at 4.308