Late Day Leakage Keeps Things Gloomy For Bonds

We're witnessing the random walk of the winter holiday trading weeks--hoping to see a more sensible range when staffing levels improve in early January.  Until then, small steps toward weaker and weaker levels seem to be a common daily agenda for bonds.  10yr yields started slightly stronger, but then leaked to the highest levels in more than a month by the close.  MBS walked a similar path, hitting the 3pm down more than a quarter point.

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Market Movement Recap
09:21 AM

Slightly stronger overnight and in early domestic trading.  Giving up some gains now with MBS down 2 ticks (.06).  10yr outperforming, down 1.7bps at 3.832

11:34 AM

Additional weakness after the 9:30am NYSE open and into the 10am hour.  Some suggestion that China/Covid headlines had an impact.  10yr up 3.6bps at 3.885.  MBS down just over a quarter point.

01:45 PM

Little changed after ho-hum 5yr Treasury auction.  Still near day's weakest levels, down just over a quarter point.  10yr up 2.6bps at 3.875

03:11 PM

Some additional weakness after the 3pm CME close.  MBS down almost 3/8ths and 10yr yields up almost 4bps to the highs of the day around 3.89.  Not a big, volatile move--just slow afternoon leakage. 

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