Bonds closed higher on the day. UMBS 5.0 ended at 98.00, up 13 basis points from Monday's close. The 10-year Treasury yield finished at 4.498%, down 1.4 basis points. The 30-year conventional rate ticked down to 6.65%.

Today's session delivered a quiet, unspectacular win. Bonds opened stronger after Monday's selloff, climbed to a midday peak of 98.06, then gave back about 6 basis points into the close — a normal late-session drift with no apparent catalyst. The net result is still positive: UMBS recovered the bulk of Monday's 26-basis-point loss, and the 10-year held below 4.50% for the full day. That level was the ceiling that capped the market all last week, so consecutive sessions of trading below it is a constructive signal, even if nothing dramatic happened.

Quoted rates moved one basis point — 6.66% to 6.65% — which tells you everything about the pace here. Bonds improved, but lenders weren't in a rush to pass it along fully. Bank stress test results drop Wednesday at 4 PM ET. If results are clean and the market yawns, you could see bonds drift further into the week. If there's a surprise, credit spreads could widen and offset any Treasury gains. The range consolidation continues.