Modest Gains After Opening Weaker

Modest Gains After Opening Weaker Tuesday ended up being a uneventful trading session despite 10yr yields hitting 3-week highs. Those highs were in place right at the open and things gradually improved from there. Markets are expressing a token amount of concern over the lack of progress on US/Iran peace, which  continues to be the biggest potential market mover. Notably, there was also an obvious reaction to Consumer Confidence data today (even though it was very small). This lets us know we can't tune out other econ data just because the broader momentum is more likely tied to geopolitical developments.  Econ Data / Events ADP Employment Change Weekly 39.25K vs -- f'cast, 54.75K prev Case Shiller Home Prices-20 y/y (Feb) 0.9% vs 1.1% f'cast, 1.2% prev CaseShiller 20 mm nsa (Feb) 0.4% vs -- f'cast, -0.1% prev FHFA Home Price Index m/m (Feb) 0.0% vs 0.2% f'cast, 0.1% prev FHFA Home Prices y/y (Feb) 1.7% vs -- f'cast, 1.6% prev Consumer Confidence 92.8 vs 89.0 f'cast, 92.2 prev Market Movement Recap 09:14 AM Modestly weaker overnight. 10yr up 2bps at 4.362 and MBS down 3 ticks (.09). 11:07 AM MBS down an eighth and 10yr up 1.8bps at 4.359 02:29 PM MBS down an eighth and 10yr up 1.5bps at 4.357. No reaction to 7 year auction