We COULD complain about the absence of volume and volatility in bond markets at the moment.  Or we could observe that the calm, relatively sideways trading of the past 2 days left MBS and Treasuries at their best 3pm closing levels since mid October.

As we discussed yesterday, that move to stronger levels is generally a result of Powell getting the nomination to be the next Fed Chair as well as the likely hurdles faced by tax reform (due to the contentious bill released last week).  Congressional leaders are already commenting on new versions of the bill being released later this week, and it now looks like the Senate is drafting their own version for Friday.  

Between now and then, there hasn't been much to catch the bond market's attention, but the trend has been friendly in terms of technical momentum.   Tomorrow's 10yr Treasury auction could be the first informative market mover of the week in terms of scheduled events (1pm).