\n Pre Fed Jitters? Not Exactly
\n <\/p>\n
\n Mon, Dec 8 2025, 4:26 PM
\n <\/p>\n
Pre Fed Jitters? Not Exactly<\/p>\n
Both stocks and bonds began to swoon moments after this morning’s 9:30am NYSE open. That sort of pervasive selling is often seen when the Fed’s rate cut outlook is deteriorating. With the Fed on deck Wednesday, it would be easy to slap “pre-Fed jitters” on the label of today’s sell-off and call it good.\u00a0 But Fed Funds Futures don’t corroborate that narrative. In fact, nothing does (at least not when it comes to obvious data\/events\/news).\u00a0 We’re left to lean on “elevated random volatility between Thanksgiving and New Years.” It’s our least favorite explanation, but in today’s case, it’s also the least stupid one we’ve seen.<\/p>\n
09:39 AM<\/p>\n
A hair weaker overnight and sideways so far.\u00a0 MBS down 3 ticks (.09) and 10yr up 1.2bps at 4.149<\/p>\n
01:31 PM<\/p>\n
drifting sideways near weakest levels. MBS down a quarter point and 10yr up 3.5bps at 4.172<\/p>\n
03:30 PM<\/p>\n
Off the weakest levels, but not much. MBS down 7 ticks (.22) and 10yr up 3 bps at 4.167<\/p>\n