Posted To: MBS Commentary
The day after Christmas falls on a Friday this year. Incidentally, that’s today, and that fact puts us in a position to even more firmly declare it an unofficial holiday . Despite the prevalent role of algorithmic trading in some sectors, markets are nothing without humans. Overnight volume numbers in Treasury futures back this up. A moderately busy overnight session would see over 200k 10yr contracts by 8am. A slow holiday-week session might see less than 100k. Today saw under 17k. That can easily be traded in a single minute following important data releases on normal business days. Point being, there’s something special about today when it comes to holiday-week slowness. But as stupid as it is for financial markets to be open today, they’re open nonetheless. Lenders will likely…(read more)
Via:: MBS Day Ahead: Lowered Expectations for the Most Official of Unofficial Market Closures
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