Bond markets continue being forced to go wherever global equities markets tell them to go. The sheer scale of the selling in China, Europe, and the US demands a safer place to park excess cash. Bond markets get the nod, but only by default.
In other words, yields were dragged lower against their will yet again. There were no significant economic reports to motivate the gains–only global market fluctuations.
It’s also increasingly clear that bonds are going to take the first chance they can get to do some selling of their own. Earlier this morning, there were a few hours where equities and oil prices were making gains simultaneously. Bonds wasted no time in moving 5bps higher (10yr yields). MBS fared better than Treasuries into that weakness, but it was still enough for several lenders to issue negative reprices.
After European markets closed, stocks resumed selling and bonds recovered. Reprices came in the other direction later in the day. Trading levels ended just slightly stronger vs yesterday.