There's little else today's recap can offer that hasn't already been covered in the mid-day commentary. Check that out here: Strong Bond Market Rally Has Nothing to do with Data.
From there, the trend simply continued into the afternoon as lower yields forced those who'd been betting against bonds to cover those bets by becoming buyers (short-covering). The snowball rally made for a whopping 10bp drop in 10yr yields today, taking them all the way to 2.389. Fannie 3.5s gained 18 ticks to end at 102-28.
The question at this point isn't whether or not the tradeflow hand-off from September to October will be positive enough to prolong the downtrend in rates, but whether it's already reaching technical resistance levels.
That question will likely get a good bit of information with the calendar events of the next two days, starting with the European Central Bank tomorrow morning, and then with NFP on Friday.
MBS | FNMA 3.0 99-11 : +0-21 | FNMA 3.5 102-28 : +0-18 | FNMA 4.0 105-29 : +0-14 |
Treasuries | 2 YR 0.5200 : -0.0550 | 10 YR 2.3890 : -0.1060 | 30 YR 3.0970 : -0.1054 |
Pricing as of 10/1/14 5:41PMEST |