Posted To: MBS Commentary

For the second straight week, the bond market will lose a day and a half of trading to holiday market closures. That largely implies the same effects as those seen last week (outlined in greater detail in the winter holiday message below). The short version is that volume and liquidity are as light as they get at this time of year. Bonds would prefer not to move much when that's the case, but are paradoxically easier to push around if imbalances arise. Bonds close early tomorrow for New Year's Eve and are fully closed on Wednesday for New Year's Day. The only top tier econ data release is Friday's ISM Manufacturing PMI, but the potential signing of the phase 1 trade deal could make waves if it actually happens before then. Some news stories suggest that's possible while…(read more)

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Source: Mortgage News Daily