Bonds were slightly weaker this morning in a move that looked like it might have been significant when compared to yesterday's narrow range. But in a just-barely-wider context, today's volatility was just as inconsequential as almost any of the days in December so far. With that, we'll continue to count down to next week's bigger-ticket data and more robust trader participation.
Moderately weaker overnight and sideways so far. MBS down an eighth and 10yr up 2.7bps at 4.135
12:02 PM
bouncing back a bit. MBS down only 1 tick (.03) and 10yr up 1.2bps at 4.119
03:14 PM
Still mostly sideways. MBS down 2 ticks (.06) and 10yr up 2.1bps at 4.128.
Lock / Float Considerations
We're now entering peak holiday mode for bond markets. This means a wider range of movement that can happen for no apparent reason even though the average year sees rates drift aimlessly sideways in the 2nd half of December. The next risk for consequential volatility from scheduled events won't be until the first week of January.
