Another Boring (But Resilient) Day

After the past few weeks, boring trading days aren’t necessarily unwelcome.  Their only real downside is that there’s not much to say about them.  Bonds are waiting for three things: more banking drama (or the progressive absence thereof), economic reports that flesh out the inflation picture, evidence that banking drama has actually had a measurable impact on the economy.  Only one of those things happens quickly, so it’s not too much of a surprise to see boring trading days with generally sideways momentum.

Econ Data / Events

Pending Home Sales

+0.8 vs -2.3 f’cast, +8.1 prev

Market Movement Recap

09:51 AM Roughly unchanged overnight.  Some early weakness, but mostly bouncing back–especially MBS.  5.0 coupons are actually 3 ticks (.09) higher on the day while 10yr yields are 2bps weaker/higher.

12:10 PM Bonds rallied during SVB testimonies.  10yr down 2bps at 3.553.  MBS up an eighth of a point.

01:19 PM modest losses after 7yr Treasury auction.  10s and MBS both unchanged on the day.  

03:07 PM MBS back near strongest levels with 5.0s up more than an eighth of a point.  10yr is roughly unchanged at 3.57%