Bonds began the day in weaker territory and continued to sell off through 2pm ET despite an absence of any obvious justifications. That said, ’tis the season for bonds to move whichever way they want without any obvious justifications. Volumes were as low as you’d expect for X-mas week, if not slightly lower. Treasuries are in a cautious stance, having been tasked with underwriting several huge shorter term auctions on X-mas week, and less than one week after a big dust-up with the Fed. It’s basically the bond market version of “sell in May and go away,” except May is December.
Market Movement Recap
08:39 AM
modestly weaker overnight, mostly after Europe opened. MBS down 2 ticks (.06) and 10yr up 3.5bps at 4.549
10:16 AM
Weaker over the past 45 minutes. MBS down 7 ticks (.22) and 10yr up 5bps at 4.564
03:03 PM
Weakest levels of the day with MBS down 10 ticks (.31) and 10yr yield up 7.7bps at 4.592