Monday Close: Why Bother?

I'm hearing volume so light in Treasury trading that you'd think tomorrow was Labor Day. Treasuries rallied late in the morning to 5.12% on 10's and hung there all day. MBS outperformed by 1 tick, but hard to say that means anything. The minor sell off in oil probably helped the bond market marginally. TIPS underperformed by 1-2 ticks. Since TIPS pay out on headline CPI, any buyer of TIPS is making a bet on oil and/or against the Fed.

Retail sales (Friday) is the only major economic release this week, so we are probably looking at light trading all week.