Friday’s trading has been slightly less exciting and has cut a much narrower range than Thursday’s trading. Markets might as well not even be open. (If that doesn’t excite you and make you want to read the rest of this update, I don’t know what will).
The overnight session was beyond flat, with the 10yr trading range best described as “less than 1bp,” for the most part. Stock futures remained capped near yesterday’s closing levels or just above, but again, bonds haven’t done anything to chase yesterday afternoon’s stock market strength.
The domestic session opened with bonds in slightly stronger territory, but trending toward weaker levels. The economic data didn’t really do anything to help or hinder those endeavors. The 10am Consumer Sentiment release briefly looked like it would be an exception, but bonds rallied back just as quickly as they sold-off at 10am (more quickly, in fact).
As of this very instant, Fannie 3.0s and 10yr yields are both WHITE in terms of day-over-day chance on MBS Live–perfectly unchanged. Any ideas on something to fill the space in tonight’s recap?