Bond markets had their ups and downs today, but ultimately, none of it really matters in the bigger picture.  Whether we look at where trading levels have been over the past two weeks or where they could go after tomorrow's FOMC events, the movement of the past two days is exceptionally small; an afterthought really.

There were no significant sources of inspiration for Treasuries or MBS today.  The latter began the overnight session in good shape and fairly solid gains were in place by the start of the domestic session.  After some morning weakness backed rates up toward unchanged levels, there was another solid bounce back into positive territory. 

Ever since 12:30pm, bonds have been leaking into weaker territory.  It hasn't been severe, but just enough to bring us into the red on the day.  Several lenders repriced negatively, but on average, rates remained in just slightly better shape vs yesterday.  All told, the first two days of the week may as well have not happened.  It's all about tomorrow.