Treasuries opened modestly changed, but the bid then faded with a tight range ensuing early on. There was a void in retail participation, as once again the growing corporate calendar ($6.15 billion corporates and $4 billion agencies were priced) stole the attention. Speculation that the Fed would keep interest rates low for some time buoyed prices off the lows.
The stock market finished slightly lower in a very choppy session.
In a weekly survey of Treasury investors by J.P. Morgan Chase & Co., the number of investors betting on gains declined while the number betting on losses increased. Thus, in light of heated geopolitics, dips proved to be shallow.
The Federal Home Loan Mortgage Corp. buyback operation saw a high offer to cover, but $1.85 billion was bought out of $2 billion -- the Street was a willing seller. Nonetheless, hedges were unwound, so by late morning, Treasuries were back in the black, though only barely, but held all afternoon in a moribund trade.