Posted To: MBS CommentaryCovid Variant Causes Massive Market Reaction This morning it was B.1.1.529. By the afternoon, the WHO labeled it the Omicron variant. The market immediately took a “guilty until proven innocent” approach. Bonds surged significantly and stocks swooned. Holiday-light trading conditions greased the skids to some extent, but even on a normal trading day, this was big news. It will likely continue to be treated as such for a few weeks at the very least. Econ Data / Events Fed MBS Buying 10am, 11:30am, 1pm Market Movement Recap 09:41 AM Massive rally overnight on new covid variant. 10yr down 12bps at 1.524 and 2.5 UMBS up more than half a point. 11:22 AM Additional gradual gains as short sellers from earlier in the week are forced to cover. 10yr down 15.6bps at 1.487 and 2.5 UMBS up more…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.