Weekend Selling Reverses After Another Round of De-Escalation Headlines

Weekend Selling Reverses After Another Round of De-Escalation Headlines Another day, another chance to sort through a barrage of war-related headlines to see which ones mattered to the bond market. In today's case, there were two distinct contenders. The first was apparently bogus. It referred to Iran considering abandoning its enrichment program and it actually caused a visible surge in volume and volatility. The second contender was a batch of headlines around 12:30ET that generally spoke to de-escalation potential and negotiation possibilities. All told, it was enough to reverse the overnight weakness seen after negotiations were allegedly abandoned. Econ Data / Events Existing home sales (Mar) 3.98M vs 4.06M f'cast, 4.09M prev Market Movement Recap 09:23 AM Slightly weaker at the open, but mostly recovered now. MBS down 1 tick (.03) and 10yr down 1bp at 4.325 01:26 PM Best levels. MBS up an eighth and 10yr down 1bp at 4.305 03:36 PM Holding near best levels with MBS up 5 ticks (.16) and 10yr down 1.8bps at 4.297