MBS stayed inside the micro-range established on Friday afternoon for the entire session. The holiday-inspired quietness was evident from the overnight session where 10yr yields settled into an extremely narrow range shortly after the Asian market open and didn’t budge until 8am.
At that point 10’s began moving generally weaker throughout the session, without regard for data or events. MBS mostly avoided that fate as Fannie 4.0s managed to hold on to morning lows–ultimately having more of a sideways day compared to the slightly weaker drift in Treasuries.
Bond markets close 3 hours early tomorrow (2pm Eastern) and then are fully closed for the Christmas holiday on Wednesday.