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Gentle Rally Gently Reverses After Trade Headlines
First thing’s first: bonds closed in stronger territory and retained most of the gains that were present in the AM hours. But they would have done just a bit better if not for a handful of newswires that hit around 2:30pm ET regarding vaguely positive comments on US/China trade talks (i.e. BESSENT ON US-CHINA TALKS: ‘GOOD MEETING’). This preceded a move up to 4.487 from 4.470 in 10yr yields–barely worth mentioning in the bigger picture, and only mentioned here to reinforce the market’s willingness to react to trade-related headlines and because US/China talks will be continuing on Tuesday.
Market Movement Recap
09:53 AM Sideways overnight and inching into positive territory after 9:30am NYSE open. MBS up 3 ticks (.09) and 10yr down 1.3bps
