After Token Correction, Bonds Stay Sleepy Into Year-End
By:
Matthew Graham
•
Wednesday's session saw the only meaningful movement of the past two weeks. Now Thursday is pushing back modestly, thus keeping the sleepy, year-end vibes intact. What are sleepy, year-end vibes? In the second half of December, we tend to see less volume, less liquidity, and less correlation between economic data and market movement. Lower volatility isn't necessarily a part of year-end vibes, but it is a higher probability bet. With this morning's economic data out of the way, the only scheduled event with any hope of causing a response in bonds is the 7yr Treasury auction at 1pm. Even if it causes a reaction, it's likely impossible that the reaction would be extreme.