Issuance Sets The Tone and Keeps Bonds Range-Bound

Bonds have now spent more than 2 weeks locked inside a very narrow trading range.  As of yesterday, yields were trying to break through the floor in the morning before moving back into the range by the close.  Today continued the rebound with yields moving roughly back to the midpoint (i.e. 3.76+ in a range between roughly 3.68 and 3.84.  The initial weakness was driven by a large corporate bond offering from Amazon.  That set the tone for the day (closing yields were very close to the initial sell-off levels).  In unrelated news, new conforming loan limits came out much higher than expected at 726,200.  Today's video discusses all of the above.