Posted To: MBS Commentary

I've been staring at this blank space on my monitor, where I normally put the words for the opening post of the day/week, for about 40 minutes, trying to think of something interesting and meaningful to say about the week ahead. The space isn't blank anymore after that first sentence, but it might as well be. Thanksgiving week is a black hole for the bond market. Activity drops sharply (usually) throughout the week. Rapidly lower liquidity can give way to counter-intuitive movements at times, and much bigger moves than would otherwise be seen. The only major wild card this week will be the fact that it is a very late Thanksgiving, thus making this "month-end" for markets. Typically, investors have the first day or two of the following week to lock down end-of-November trades…(read more)

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Source: Mortgage News Daily