Bonds traded almost exactly the same range as they did yesterday. This time around, volumes were 33% lower, bringing them in line with recent lows (the likes of which are usually only seen at this time of year or amid winter holidays).
Part of the increased sense of calm is due to the calmer movement in stocks. Yesterday's sharp stock losses served as the key driver of volume and volatility, even though they didn't stir bonds to big outright movements. That's refreshing, in a way, because bonds could have used today's stock market resilience to push back toward higher yields. Instead, they willingly held the microscopic gains, resulting in the lowest closing yields since the Italian drama sent shockwaves through markets back in late May.
We're left with the same old sense that both stocks and bonds are waiting to make a big decision on the next big move, and that we could be waiting a while for a clear indication from either of them. Still, in 2018--the year that rates are supposed to have been higher than they are now--that feels like at least some small victory.
Today's economic data was uneventful, with Consumer Confidence coming in slightly weaker than expected. Tomorrow's may be uneventful as well, but the 8:30am Durable Goods report is a bigger-ticket event that at least has a better chance to cause some movement.