Durable goods data made for a semblance of volatility this morning, with the core components resulting in a small rally at 8:30am. Bonds bounced back into weaker territory at 9:30am amid NYSE tradeflows. There was another mini-rally and another mini-sell-off ultimately giving way to an extremely narrow range near unchanged levels for the rest of the day. MBS outperformed Treasuries by an amount that makes good logical sense on a Treasury auction week. All in all, it may as well have been a 3 day weekend.
Modestly weaker overnight and recovering after Durable Goods data. MBS unchanged. 10yr down 0.6bps at 3.794
10:01 AM
Back into negative territory. MBS down 2 ticks (0.06) and 10yr up 1.7bps at 3.817
03:19 PM
Sideways in a narrow range since the last update. MBS unchanged and 10yr up 1.4bps at 3.814
Lock / Float Considerations
Uneventful start to the new week. Not much data this week, but Treasury auction cycle connotes headwinds until Thursday, all other things being equal. Risk/reward is much lower than it will be in the next 2 weeks, but volatility can still occur in response to a few of the AM economic reports--Friday's PCE and Thursday's jobless claims being the most notable.