From embarrassing domestic restrictions to more emerging situations overseas, news from omicron dealt a blow to the stock markets today and led to a moderate rally in safe-haven stocks. As such, the Treasury market performed well and MBS followed these paths without incident. Movements may have been a bit larger than they might otherwise have been due to a lower volume profile typical of December Mondays. The biggest volatility revelations remain tied to Wednesday’s Fed announcement.

08:32

Moderately louder at night. Weaker opening in Asia, then steady gains everywhere. 10 years down 1.2bp to 1.47%. MBS up to 2 ticks (0.06).

11:28

Further gains as bond yields follow the decline in equities. 10 years down almost 6 basis points to 1.424 and 2.5 UMBS up almost a quarter of a point.

15:43

Flat at stronger levels all day. No major changes since the last update. Very low volume