Uneventful End to an Eventful Year

2023 may be a year that we won't soon forget, but the past two weeks have been quite the opposite. Today's holiday-shortened trading session did nothing to change the narrative.  Yields were modestly higher overnight, giving chase to a slightly bigger sell-off in Europe.  Domestic traders pushed back toward unchanged levels by mid day but sellers resurfaced at the 1pm CME close. Trading levels remained easily within the exceptionally flat range seen since Dec 14th. We continue to focus on next week's economic data and Fed Minutes as the first major sources of potential volatility in 3 weeks.

Econ Data / Events
    • Chicago PMI
      • 46.9 vs 51.0 f'cast, 55.8 prev
Market Movement Recap
09:34 AM

Weaker overnight with Europe.  10yr up 3.5bps at 3.881.  MBS down an eighth.

11:28 AM

MBS back to unchanged.  10yr now up only 1.6bps at 3.862.

01:33 PM

Weakness at the 1pm CME close.  10yr up 4bps at 3.885.  MBS down an eighth.

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