Uneventful Monday Despite AM Volatility

Durable goods data made for a semblance of volatility this morning, with the core components resulting in a small rally at 8:30am.  Bonds bounced back into weaker territory at 9:30am amid NYSE tradeflows.  There was another mini-rally and another mini-sell-off ultimately giving way to an extremely narrow range near unchanged levels for the rest of the day.  MBS outperformed Treasuries by an amount that makes good logical sense on a Treasury auction week.  All in all, it may as well have been a 3 day weekend.

Econ Data / Events

Durable Goods

9.9 vs 5.0 f’cast, -6.9 prev

Core Durable Goods

-0.1 vs 0.0 f’cast, 0.5 prev

Market Movement Recap

08:46 AM Modestly weaker overnight and recovering after Durable Goods data.  MBS unchanged.  10yr down 0.6bps at 3.794

10:01 AM Back into negative territory.  MBS down 2 ticks (0.06) and 10yr up 1.7bps at 3.817

03:19 PM Sideways in a narrow range since the last update.  MBS unchanged and 10yr up 1.4bps at 3.814