Disappointing housing data lifted volatility in Treasury futures.

The 10-Year Treasury yield experienced intraday volatility, briefly reaching 4.10% before reversing to close at 4.07%. This downward shift followed weaker than expected housing data and increasing geopolitical concerns in the Middle East. Despite the lower yields, the CVOL index indicated higher market volatility as participants weighed economic and geopolitical risks. Investors prepared for a significant slate of data, including the December PCE index and fourth quarter GDP. Additional focus remained on global PMIs and the University of Michigan sentiment report, specifically its 1-year and 5-year inflation components, as the Federal Reserve evaluates upcoming policy decisions.