Bonds ended last week on a strong note, with yields challenging the lower levels of the recently upper range. Without a definitive break, we had to wait until the current week to see if the good times could continue. They couldn’t – at least not today. In that sense, the new week could have started better. On the flip side, losses are minimal and bonds are still much closer to last week’s best levels. In that sense, things could certainly be worse. Either way, we’re waiting until last week’s highs or lows are passed – something that’s quite likely to happen after Friday’s jobs report, if not before.

9:00 a.m.

Initially stronger at the start of the night session, then progressively weaker in the domestic hours. The 10yr is now close to the day’s highs, up 2.6bp to 1.491. 2.5 UMBS down 2 ticks (0.06).

10h59

After hitting the lowest levels for the day around 10 a.m., bonds have climbed back to the best levels for the day now. 10-year yields are only up 1.2bp to 1.477 and MBS are unchanged from the last update.

15:29

Slightly weaker now with 10-year yields up almost 2 basis points to 1.484 and MBS down an eighth of a point. The larger theme is decidedly aside for the day.