Back Near Best Levels After Solid Auction Results For those who'd been watching bond markets on Friday's half day, it was perhaps slightly disconcerting to see a week's worth of gains quickly erased. And while there was no guarantee that "whatever happens on the Friday after Thanksgiving can easily UN-happen the following week," here we are back in last Wednesday's range with help from a merely decent 5yr Treasury auction. Incidentally, last Wednesday's range saw bonds near their best levels in 2 months. Econ Data / Events New Home Sales 679k vs 723k f'cast, 719k prev Market Movement Recap 09:07 AM After losing ground on Friday, bonds are bouncing back a bit. MBS up nearly an eighth and 10yr down 2bps at 4.453. 11:35 AM 2yr auction a bit weaker than expected. No major reaction. 10yr down 3.1bps at 4.437. MBS up an eighth. 01:07 PM 5yr auction helping. 10yr yields are now down 7.2bps on the day at 4.40 and MBS up 10 ticks (.31). 03:15 PM Best levels of the day at the 3pm CME close with MBS up almost 3/8ths and 10yr yields down 8bps at 4.392.
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