Today was perhaps the simplest trading session for bond markets in recent memory. There was one relevant piece of information and one meaningful move in trading levels as a result.
The information in question was Sunday’s news that the FBI had already determined Hillary Clinton would not face any charges of wrongdoing relating to the slew of previously unexamined emails (announced on October 28th). Bond markets have done better when Trump has been doing better, so the Clinton-friendly news made for an immediate trade toward significantly weaker levels right as markets opened.
And that was it, for the most part. Treasuries and MBS chopped sideways in a narrow range surrounding the much weaker levels. 10yr yields first trade of the day was at 1.8224 and they ended at 1.828. MBS ended the day down just over an eighth of a point.
Markets continue waiting on the election for the next major cue.