Treasuries and MBS didn’t end up making much progress today. Fannie 3.5s are only 2 ticks higher than they were at the close on Friday and 10yr yields aren’t even 1bp lower. But bond markets were still arguably successful. Reason being: stocks advanced by nearly 20 points in the S&P.

Why is this significant? Because equities have been the primary guidance giver for bond markets recently, and a 20 point move in the S&P is not the sort of thing that bonds have been able to overcome until today. That could mean today was simply less consequential, it could also be a sign of growing technical support in bond markets.