MBS Outperform as Treasuries Give Back Some of Last Week's Gains

After rallying from roughly 4.45 to 4.22% last week, 10yr Treasuries began the new week with a move up 4.28%.  MBS didn't lose ground as quickly today, which is what you'd expect after they underperformed for a week as Treasuries rallied somewhat sharply.  It was a boring day in terms of data, events, and volume.  NY Fed Manufacturing didn't have a discernible impact and traders were unsurprised by updates from Fed's Harker.  The losses feel like a token correction with effectively no bearing on tomorrow's directionality.  That majority of that honor goes to Retail Sales, or at least all rights are reserved by Retail Sales.  It would still take a big beat or miss to prompt a logical and meaningful reaction.