Over Before it Began

Over Before it Began Monday proved to be a boring trading day despite the moderately big sell-off. Yields actually didn't move much during the domestic session. In fact, they didn't move during the overnight session either. Because the day's market-moving news happened on Sunday before trading began, it was instantly priced in at the open, and the rest of the day was spent drifting sideways to slightly weaker. Bonds ultimately underperformed their prevailing correlation with oil prices. We're not reading anything into this--especially in light of the Treasury auction cycle possibly adding some concessionary weakness.  Econ Data / Events Existing home sales (Apr) 4.02M vs 4.05M f'cast, 3.98M prev Market Movement Recap 09:03 AM Weaker overnight after peace deal impasse. MBS down a quarter point and 10yr up 2.6bps at 4.381 12:58 PM weakest levels with 10yr up 4.6bps at 4.401 and MBS down almost 3/8ths 02:08 PM some support after hitting weakest levels. MBS down 11 ticks (.34) and 10yr up 4.8bps at 4.403