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.
Fed MBS Buying 10am, 11:30am, 1pm
Modestly stronger overnight. Weaker open in Asia, then steady gains throughout. 10yr down 1.2bps at 1.47%. MBS up 2 ticks (0.06).
Additional gains as bond yields follow stocks lower. 10yr down almost 6bps at 1.424 and 2.5 UMBS up nearly a quarter point.
Flat at stronger levels all day. No major changes since the last update. Very low volume