Bonds lost a moderate amount of ground on Monday with 10yr yields moving back above the levels seen before last Friday's jobs report. MBS didn't lose quite as much ground thanks to their higher correlation with shorter-dated Treasuries these days. There were no significant economic reports and it was the lowest volume day of the year so far--a stunning reality considering that honor would usually go to the Friday after Thanksgiving. In addition to the low volume qualifier, today's weakness is inconsequential simply because it keeps bonds right in line with the flat-line in yields seen over the past 6 trading days. If anything, Friday was the outlier there and today is just another day with 10yr yields near 4.20. It's also just another day where bonds are grinding sideways as they wait for bigger inspiration.
