Barring an unexpected vote (and passage) of the $2k stimulus upgrade, bonds are on cruise control heading into the end of the day/week/year.  Even then, the Georgia senate race is a bigger risk for the bond market (full democratic control implies bigger stimulus in 2021, which is paid for with Treasuries, thus pushing yields higher).  Trading ranges were increasingly narrow as the day progressed and yields remained well under the prevailing support levels around 0.96%.  

Market Movement Recap

08:39 AM

Bonds opened weaker in Asia with global equities markets rallying at the start of the overnight session.  Things have been flat since then and range boundaries remain intact.  10yr +2bps at .943% and UMBS 1.5 just a hair lower at 100-26 (100.81).

12:50 PM

Bonds rallying on the political stalemate surrounding the $2000 covid relief vote.  McConnell is blocking it for now.  No word yet on whether democrats will try to push for a vote via defense act filibuster.  10yr yields back within a bp of unchanged and MBS up 2 ticks (0.06) at 100-28 (100.875).

03:40 PM

Barring an unexpected vote (and passage) of the $2k stimulus upgrade, bonds are on cruise control heading into the end of the day/week/year.  No major changes since the last update.  Trading ranges are getting narrower as the day progresses.


MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

MBS

UMBS 2.0

103-21 : +0-02

Treasuries

10 YR

0.9330 : +0.0000

Pricing as of 12/29/20 3:50PMEST

Today’s Reprice Alerts and Updates

8:49AM  :  Slightly Weaker Overnight, But Well Within The Range


Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Dec 29
9:00 CaseShiller 20 yy (% ) Oct +7.9 6.9 6.6
9:00 CaseShiller 20 mm SA (%) Oct +1.6 1.0 1.3
10:00 Consumer confidence * Dec 97.0 96.1
13:00 7-Yr Note Auction (bl)* 59

By Matthew Graham , dated 2020-12-29 15:52:00

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Courtesy of Mortgage News Daily

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