Token Gains, Light Volume, Early Close

Bond market focus remains on the Georgia senate run-off election day on January 5th.  Today was a non-event... a place holder in the grand scheme.  Any movement today was bound to be incidental.  As it happened, that movement was friendly, albeit only modestly.  Expect bigger movement in the middle-to-end of next week as GA election results roll in.  Happy New Year!

Econ Data / Events
Market Movement Recap
09:29 AM

Mostly unchanged overnight, slightly weaker at the open and rallying back to unchanged presently.  10yr yields at .926 and UMBS 1.5 coupons +0.03 at 100.94.  All movement should be assumed to be incidental and without momentum implications unless otherwise noted.

01:48 PM

Nice move in MBS, mid-day, but not for any particular reason apart from supply/demand imbalances courtesy of the Fed and sleepy holiday-week trading activity (i.e. the Fed is still a big buyer, but sellers are harder to find, so prices go up).  This wasn't necessarily a given.  Month-end traders could have had some selling to do, but since they didn't, this is what we get.  UMBS 1.5 coupons closing out the year at the highest prices of the month, up 6 ticks (.19) at 101-03 (101.09).