Traders Running For Sidelines Ahead of Next Week's Election

Big losses in both stocks and bonds today as traders take their seats for next week's big show.  Month-end trading volumes were huge.  It was the single biggest trading day since June.  After 2016, no one wants to be anything other than nimble on election week.  

Econ Data / Events

  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • Core PCE Inflation, annual 1.5 vs 1.7 f'cast, 1.4 prev

  • Chicago PMI 61.1 vs 58.0 f'cast, 62.4 prev

Market Movement Recap
09:00 AM

Mixed performance overnight amid heavy volume.  Stronger in Asia.  Weaker in Europe.  Nearly unchanged to start the domestic session and slightly stronger since then.  No reaction to data.  A few big, obvious, month-end trades helping so far.

03:59 PM

Bonds and stocks both lost ground in a fairly big way in the morning hours as traders decided they'd much rather be in cash heading into election week.  Mid-day hours were fairly flat and weakness returned at the 3pm CME close.  Month-end volume was massive--biggest in 4+ months--adding emphasis to the bond market's defensive approach to the week ahead.