MBS Day Ahead: Limited Data and Participation


In the absence of some sort of watershed event, the only real reason for bond market participants to pay even a small amount of attention between Christmas and the New Year is to adjust year-end trading positions.  98% of such things are already done, however, and the remaining 2% is more likely to be seen on the 30th and 31st as opposed to the day after Christmas and the data-free Friday that follows it.

Despite the tumbleweeds rolling by trade desks today, weekly Jobless Claims is with us as always.  Thankfully for those who’d rather tune out, this report hasn’t offered many reasons to tune in recently, as it has exhibited the most volatility over the past 3 months than any other 3 month period in well over a decade.  That normally suggests trading levels will pay less attention than normal, but the caveat is they can pretty much do whatever they want with volume as low as it should be.

Jobless Claims


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