Stocks gained a bit of ground today. Oil prices were significantly higher–building on a strong 3-day bounce. But on both accounts, bond markets didn’t get the memo. Bond prices continued to levitate despite a relative lack apparent justification.
There was some justification in the the morning with ultra weak Durable Goods data and in the afternoon with the incredibly strong 7yr Auction. But even then, bonds have been doing a little bit better than it seems like they should be. This is likely a factor of the month-end bond trading environment, considering tomorrow is the last trading day of the month.