Bonds were mostly flat overnight before a sharp sell-off from 8am through 10am ET. After that, momentum went flat again--especially the last 4 hours of trading. No one is still debating whether or not the AM sell-off was due to Japan's central bank news or a post-holiday return to reality. Yields are back in the pre-Thanksgiving range and ready to respond to this week's bigger-ticket econ reports.
Mostly flat overnight but selling steadily since 8am. MBS down a quarter point and 10yr up 6.9bps at 4.084
11:09 AM
No reaction to ISM data. Holding at weakest levels. MBS down 9 ticks (.28) and 10yr up 7.6bps at 4.09
02:34 PM
Steady at weakest levels. MBS still down 9 ticks (.28) and 10yr up 7.9bps at 4.093
Lock / Float Considerations
With holiday-related gyrations in the rearview, rates are in a familiar range seen throughout most of November. Risk/reward is more straightforward in the coming days with economic data standing the best chance to cause volatility.
