Posted To: MBS Commentary

Bonds will be fully open today and tomorrow, but we're not quite back to what would be considered "normal trading" yet. There is no significant data on tap today but volume should begin ramping back up as we are through the winter holidays. This is sort of an in-between time (the next 48 hours) where there will still be some leftover holiday effects on liquidity (which can exaggerate any given move, for better or worse), but where we also may see a bias in one direction or the other due to "new year" trading themes (sort of a bigger, opposite version of " month-end trading ." Once the bigger-picture consolidation pattern begins to break down, we'll be able to talk about the next major theme/trend in bonds. To be sure, the average trader is more concerned…(read more)

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Source: Mortgage News Daily