Today created very little--if any--need to think, say, or do things that haven't already been thought, said, or done--at least when it comes to bond trading.  The week was effectively over with yesterday's sideways session--a fact I emphasized in this morning's Day Ahead for the three of you tempted to continue paying attention to markets today.

The super low volume, super sideways trading wasn't for lack of interesting economic data.  Durable Goods was weaker than expected, including the important "Cap-Ex" component.  Also in the 8:30am time slot, Core year-over-year PCE (something the Fed would like to see at 2.0%) merely met expectations of 1.5%.  Despite those relatively bond-friendly cues, there was no reaction.

Then at 10am, New Home Sales completely obliterated forecasts as well as the previous post-crisis record.  Surely, this would be enough to register a response even in "holiday light" trading.  Alas, it was not (no objection, considering it would have pushed rates higher if there was a reaction).  Finally, Consumer Sentiment came out fairly close to forecast, but with inflation expectations still historically low.  Bond buyers weren't any more interested in that data than sellers in the New Home Sales data.

Volumes were in line with the lowest of the year (day after Thanksgiving) and volatility was even lighter.  Real trading will pick back up in January, but we'll still be watching and reporting on any relevant developments next week.  Note: markets are closed on Monday for Christmas.  


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.5
102-09 : +0-01
Treasuries
10 YR
2.4846 : +0.0016
Pricing as of 12/22/17 5:26PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:14AM  :  Here's How That New Home Sales Beat Looks on a Chart
8:50AM  :  Dramatic Burst of Silence Follows Econ Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "Merry Christmas to this awesome community. While closings and rates may vary, we're blessed to be in a profession that provides ample earnings opportunities AND the chance to help folks improve their lives every day."
Hugh W. Page  :  "And I'll third it. Whatever you celebrate, enjoy it with your families. Here's to a better 2018!"