Weekend News Cycle Hurts Stocks, Helps Bonds

Whether it's bothersome restrictions domestically or more emergent situations overseas, omicron news dealt a blow to equities markets today and drove a moderate rally in safer havens.  As such, the Treasury market did well, and MBS rode those coattails in uneventful fashion.  The moves were perhaps a bit bigger than they otherwise might have been due to a lower volume profile typical of December Mondays.  The bigger volatility revelations remain tied to Wednesday's Fed announcement. 

Econ Data / Events
Market Movement Recap
08:32 AM

Modestly stronger overnight.  Weaker open in Asia, then steady gains throughout.  10yr down 1.2bps at 1.47%.  MBS up 2 ticks (0.06).

11:28 AM

Additional gains as bond yields follow stocks lower.  10yr down almost 6bps at 1.424 and 2.5 UMBS up nearly a quarter point.

03:43 PM

Flat at stronger levels all day.  No major changes since the last update.  Very low volume