Bonds were modestly and inconsequentially more powerful in the over night session. By 8am, this brought 10yr yields just under 4.30%. Less than an hour later, yields fell to 4.23 and MBS rose over 3/8ths of a point on a trio of headings. The first was an information from a proposed strategy to end the war (including unfreezing Iranian assets in exchange for Uranium). The second was a notice about settlements in Islamabad this Sunday which defeat might personally participate in. The third was the greatest market mover and involved Iran’s Foreign Minister announcing a reopening of Hormuz for the rest of the ceasefire. It’s uncertain how that info engages with the U.S. blockade, but the market doesn’t appear to be asking that concern.
In spite of the sharp gains, today’s bond market motion still fits in the scope of the wider drop since late March.
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