In hindsight, it’s been a boring week for bonds with each trading day falling mostly inside Monday’s range and easily inside the 2-day range set by Friday and Monday. Flat trading isn’t all that uncommon, but it’s less common when it follows a surge to the lowest yields in nearly 2 years.
All that having been said, we haven’t seen much reason for rates to move higher or lower this week. If markets are concerned with global growth risks and if they’re taking cues from central banks, we haven’t seen any new narratives so far. The next good opportunity for that to change will be with tomorrow morning’s jobs report.
As for today’s minutia, there was some narrow-range volatility early this morning surrounding the European Central Bank announcement and press conference. Domestic economic data was a non-event. Bonds were moderately stronger early and then gave up ground in the afternoon. US/Mexico tariff headlines caused more narrow-range volatility late in the day but none of it was enough to threaten even yesterday’s highs/lows, let alone those set earlier in the week.