Treasuries have experienced more of the volatility in the bond market than MBS recently.  That makes sense given last week’s auction cycle and the ongoing glut of corporate bond issuance.  Volume and volatility were both minimal today as yields casually bumped the bottom of the consolidation range and coasted sideways for the rest of the day.  There are a few chances to see some data-inspired market movement this week, but the “consolidation ahead of next week’s Fed Announcement” seems to be the default game plan.

09:11 AM

Sideways to modestly stronger overnight in bonds, with a decent recovery in stocks.  10yr yield down 1bp at 1.333% and 2.0 UMBS up 2 ticks (0.06) at 101-06 (101.19).

01:03 PM

MBS gained a bit of ground heading into the noon hour, but prices are fading a bit in the PM hours.  2.0 coupons are back to +0.06 at 101.19 (highs of day at 101.27).  10yr yield down 1.5bps at 1.328.

03:29 PM

MBS unchanged from the last update while 10yr yields are just a hair stronger (1.324 now).  Overall vibe is sideways and quiet.  Sleepy summertime Monday.