Bonds are technically fully open today, but holiday trading themes remain.  That means volume and liquidity will remain light, and trading momentum can arrive and depart for no good reason.  A certain portion of the trading community will treat today as the last trading day of the month/year, which could bring a bit more movement than we've seen in recent days.  Even so, that movement wouldn't necessarily be indicative of things to come.

The following is a repeat:

I won't be writing very much this week, but rest assured, I will be here and I will continue monitoring markets like a hawk and sending out alerts as needed.  Even so, you should never rely solely on my written alerts.  I highly recommend you set up automated alerts HERE and refine them over time to suit your individual needs.  This way, if I'm struck by lightning or hit by a meteor, you'll still be protected until the MBS Live team can fire up one of my clones we have in cold storage.

Here are a few links that provide the gist of late December trading:

Traders are people too
Illiquidity
Stick a fork in 2019
Sometimes Month-End Comes Early

And because I always like to put a chart in the morning commentary, here's yet another look at the rather epic consolidation that has been intact for nearly half a year now.  Realistically, there's not a whole lot of riveting bond market analysis to be done until this consolidation is resolved (Jan or Feb 2020, most likely).

20191227 open


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 3.0
101-12 : +0-02
Treasuries
10 YR
1.8790 : -0.0260
Pricing as of 12/27/19 9:07AMEST