Perspectives
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Monthly Macro Monitor: December 2025
Read More- Effects of the federal government shutdown continued to impact data availability for the December economic releases, but economic reporting is expected to normalize by late January with the combined release of the October and November PCE data on January 22nd. Although reporting will return to its traditional schedule, the Bureau of Labor Statistics will not be able to release October unemployment or CPI figures because the primary data was never collected during the shutdown. As such, these missing data points have been replaced with ‘imputed’ values that may mask data trends in future releases.
- In light of this dynamic, Chair Powell cautioned at the Fed’s December press conference that near-term inflation and labor reports may be “more volatile” and “distorted” and that the Fed will likely “have to look at [the data] carefully and with a somewhat skeptical eye by the time of the January meeting.”
- The macro environment for Agency MBS remained favorable in December, as interest rate volatility declined, the yield curve steepened, and Agency MBS spreads to benchmark rates tightened over the course of the month.
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Why Agency MBS: Market Snapshot
Read MoreAgency MBS assets benefit from compelling fundamentals and favorable attributes that make them a critical building block of any investment portfolio.
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Monthly Macro Monitor: December 2025
Read MoreA quick update on the market environment, including key rate and spread trends that are top of mind for Agency MBS investors.