Bonds Have a Case of The Mondays
Abstract
Bonds Have a Case of The Mondays Unlike the past 3 Mondays, which have seen fairly healthy participation and volumes, today ended up trading more like one of the Mondays seen during the less active times of year. Bonds responded to a glut of corporate bond issuance in the morning. Higher oil prices and the looming Treasury auction cycle may have added to defensive trading strategies, but trading was so light that we're not keen to read too much into it-especially when yields stayed perfectly mid-range. Flat in Asia, slightly weaker in Europe, additional selling in the 1st hour of domestic trading as corporate issuance weighs. Decent bounce back starting just before 9:30am ET. 10yr now up only 2.6bps at 3.51. Sideways grind all afternoon after pulling back from highs around the time of the last update.