As foreseen, foretold, and prophesied, today’s trading session was the slowest of the year for bond markets. It wasn’t even close either. 10yr Futures contacts were still under 80k by noon, which is roughly a tenth of what we’d see during a busy day by this time of day. Unlike Tuesday’s low volume session, today’s was exceptionally calm.
If there was a detectable bias in the morning, it was negative. 10yr yields were as low as 2.239 just after the open, but moved up slowly and steadily to 2.255. They leveled off from there, with both Treasuries and MBS holding positive territory relative to Wednesday’s latest levels. Literally nothing happened in markets today. Trading levels only moved when the buy/sell buttons were incidentally struck by tumbleweeds.