Two-Way Trading But Not Much Day-Over-Day Movement
Thu, Dec 11 2025, 4:11 PM
MBS Recap
Two-Way Trading But Not Much Day-Over-Day Movement
MBS Recap Matthew Graham | 4:10 PM
Two-Way Trading But Not Much Day-Over-Day Movement
Bonds had a solid morning, adding moderately to yesterday's rally and taking yields well into the lowest levels since last Friday. But from just after the 9:30am NYSE open, bonds leaked slowly weaker, ultimately ending the day closer to unchanged levels. In the bigger picture, nothing interesting or significant happened, and December 16th (jobs report day) is set to be the only other obviously tradeable day of 2025.
Stronger after claims data. MBS up 6 ticks (.19) and 10yr down 3.6bps at 4.115
12:44 PM
MBS up an eighth and 10yr down 2.7bps at 4.123
02:30 PM
Gains fading a bit. MBS up only 2 ticks (.06) and 10yr down 1.1bps at 4.14
03:57 PM
drifting out at same levels as last update. MBS up 2 ticks (.06) and 10yr down 0.9 bps at 4.142
Lock / Float Considerations
The friendly reaction to the Fed announcement (and press conference) helps reinforce the prevailing range. Risk-tolerant clients will use the ceiling of the range as a lock trigger while risk-averse clients will capitalize on today's mid-day price improvements. Volatility risk decreases over the next few days, but will pick back up again leading up to the Dec 16th jobs report.
