Bond Market in Holiday Mode
By:
Matthew Graham
•
Bond Market in Holiday Mode
Holiday mode is impossible to clearly define when it comes to its impact on the bond market. We know it when we see it, and we saw it today. Bonds paid no attention to econ data no matter how much it may seem that the 10am Consumer Sentiment numbers had an impact. Movement was minimal and not visibly tied to any other motivation. And as we already discussed this morning, Japan's rate hike was a non-event. Holiday trading randomness will get worse over the next 2 weeks before it improves in early January.
Econ Data / Events
-
- Consumer Sentiment (Dec)
- 52.9 vs 53.4 f'cast, 51.0 prev
- Existing home sales (Nov)
- 4.13M vs 4.2M f'cast, 4.1M prev
- Sentiment: 1y Inflation (Dec)
- 4.2% vs 4.1% f'cast, 4.5% prev
- Sentiment: 5y Inflation (Dec)
- 3.2% vs 3.2% f'cast, 3.4% prev
- U Mich conditions (Dec)
- 50.4 vs 50.7 f'cast, 51.1 prev
- Consumer Sentiment (Dec)
Market Movement Recap
10:12 AM
Sideways at modestly weaker levels. MBS down 2 ticks (.06) and 10yr up 2.1bps at 4.143
12:15 PM
Decent recovery into 11am, but fading a bit now. MBS down 3 ticks (.09) and 01yr up 2.7bps at 4.148