The proverbial "you know what" just got real.  We'd been waiting for the first big dose of bond market momentum following months of consolidation heading into the end of 2017.  We figured it would show up around the 2nd week of January.  It's showing up.  It's the less pleasant of the two possible outcomes.  The end.

2018-1-10 open

Seriously, that's it for today's Day Ahead. There's no sense in overcomplicating the issue.  It's not event-driven.  It's not overnight news out of China.  That was a symptom of our disease--not the germ that caused it.  We've been discussing the risk of said disease incessantly.  On the off chance this is your first day reading my notes, you'd be better served by skimming recent examples than by me rehashing it all over again.  Here's a list.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
101-22 : -0-09
10 YR
2.5898 : +0.0438
Pricing as of 1/10/18 9:00AMEST

Tomorrow's Economic Calendar
Time Event Period Forecast Prior
Wednesday, Jan 10
7:00 Mortgage Market Index w/e 368.6
8:30 Export prices mm (%)* Dec 0.5
8:30 Import prices mm (%)* Dec 0.5 0.7
13:00 10-yr Note Auction (bl)*