Late December Sticking to The Script

Late December Sticking to The Script

The baseline is "boring" when it comes to Thanksgiving week and the 2nd half of December.  Things don't always go according to those plans, but bonds are sticking to the holiday trading script this year.  For the 3rd straight day, 10yr yields are heading into the after hours session within 1bp of 3.92%, and they haven't been far from there in intraday terms.  This is an exceptional absence of volatility and directionality relative to all the movement leading up to last week's Fed rally.  As long as it stays that way, bonds are sticking to the script and there's nothing to see here.  If it doesn't stay that way, we'll cross that analytical bridge if we come to it.