Modest Recovery From Morning Weakness

Bonds were slightly weaker this morning in a move that looked like it might have been significant when compared to yesterday’s narrow range.  But in a just-barely-wider context, today’s volatility was just as inconsequential as almost any of the days in December so far.  With that, we’ll continue to count down to next week’s bigger-ticket data and more robust trader participation. 

Econ Data / Events

Case Shiller Home Prices-20 y/y (Oct)

1.3% vs 1.1% f’cast, 1.4% prev

CaseShiller 20 mm nsa (Oct)

-0.3% vs — f’cast, -0.5% prev

FHFA Home Price Index m/m (Oct)

0.4% vs 0.1% f’cast, 0% prev

FHFA Home Prices y/y (Oct)

1.7% vs — f’cast, 1.7% prev

Chicago PMI (Dec)

43.5 vs 39.5 f’cast, 36.3 prev

Market Movement Recap

10:10 AM Moderately weaker overnight and sideways so far. MBS down an eighth and 10yr up 2.7bps at 4.135

12:02 PM bouncing back a bit. MBS down only 1 tick (.03) and 10yr up 1.2bps at 4.119

03:14 PM Still mostly sideways. MBS down 2 ticks (.06) and 10yr up 2.1bps at 4.128.