Good morning on this fantastic Wednesday, always the best day of the week,

The only data out today was Existing Home Sales which came in low at 4.09M vs 4.2M and Consumer Confidence which was a huge beat at 108.3 vs 101.0. Normally, neither would have an impact on markets but with trading thin (and I mean thin) the data quickly pared back the gains we had in the bond market.

We are still seeing some love in mortgage bonds but not so much in Treasures where the 10-yr has backed up into the next trading channel at 3.70%. I expect we will remain in this range until we see Fridays PCE numbers.

Today is the shortest day of the year so not only metaphorically but also actually, we are coming out of the darkness into the light.

Please remain safe and stay healthy, Happy Holidays and make today great!