Counting Down to Ending The Shutdown After Tuesday’s Holiday Closure

Bonds were weaker in the overnight session with at least some of the blame presumably going to a sudden improvement in the prospects for reopening the government. To whatever extent that blame is merited, the rest of the week is increasingly interesting. Tuesday is fully closed due to the Veterans Day holiday. A House vote on a shutdown resolution could happen as early as Wednesday. Even if the vote is looking more like Thu/Fri, any headlines that clarify the timeline or the details could be tradeable events.

Market Movement Recap

10:21 AM Moderately weaker overnight, but rallying back a bit now.  MBS down an eighth and 10yr up less than 1bp at 4.100

02:04 PM A hair weaker vs AM levels despite well-received 3yr TSY auction.  MBS down 6 ticks (.19) and 10yr up 1.8bps at 4.111