Decent Gains With Some Help From 7yr Auction
You know it's a holiday with an early closure if we're talking about a 7yr Treasury auction having an impact on the bond market. To be fair, 7s have had an impact once or twice in the past, but the bar is certainly high. The holiday calendar makes the bar a bit lower as fewer determined traders are required to move the whole pile. Such was the case after the 11:30am ET auction. Bonds were already in good shape before that, but the earlier gains were more incidental than data-driven.
Econ Data / Events
Continued Claims (Dec)/13
1,923K vs -- f'cast, 1897K prev
Jobless Claims (Dec)/20
214K vs 223K f'cast, 224K prev
Market Movement Recap
08:31 AM Unchanged overnight and no reaction to claims data. MBS unchanged and 10yr down 1/10th of a bp at 4.165
Land Loan, Agentic AI Tools; Deep Dive Into Earnings; Pennymac’s Spector on Servicing Value
Here in the hallways at the Western Secondary in L.A., there isn’t a lot of talk about GSE reform, although this short clip from Sam Valverde, ex-acting president of Ginnie Mae, revisits the subject: The GSE reform trigger nobody’s watching closely eno…