• stone silent and slightly positive
• no economic motivation
• a few traders closed short positions, which helps bonds improve

Today was by far the lightest trading day of the year.  As such, this recap will be short and to the point.  Unless this is your first day reading my commentary, you're already up to speed on the Nov/Dec bond market theme.  For those that need a refresher, that theme is: FLAT!

We've had a few semi-abrupt pops higher and lower in yields and MBS prices, but they've consistently been followed by a regression to the almost perfectly flat average levels.  With rising yields over the past two days beginning to push the averages higher, it's no surprise to see a modicum of strength reining them in today. 

That's really about it.  There was no trading motivation from fundamentals or events--just tradeflow housekeeping.  That refers to either making compulsory trades for non-market-related reasons or the simple closing of positions ahead of a long weekend.  If a trading position in bonds is "short," then closing it entails buying bonds, thus pushing yields lower.