Some prices go down
December 8, 2025
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–Despite early block trade buys of 90k FVH6 ~109-11+ and 80k TYH6 112-23+ on Friday, futures closed lower. FVH6 settle 109-07+ and TYH6 112-16+. FV buys appear new with prelim OI +47k and TY exit with OI -35k. Ten year yield up 2.7 bps on the day to 4.137%. Three year auction today, followed by 10s Tuesday and 30s on Thursday, with FOMC decision on Wednesday.
–New recent highs in some of the near SOFR calendars. For example, SFRH6/M6 settled -21 (9643, -2 & 9664, -3). These two contracts bracket the end of Powell’s term as Fed Chair. While the inversion still suggests easing bias, some had originally thought this spread could move to -40 or more, on the idea that a new Trumpian Fed Chair would instantly slash rates. Interestingly, ECB Board member Isabel Schnabel today said she’s comfortable with investor bets that the ECB’s next move will be an increase (BBG).
–Frank Sinatra’s classic song Chicago features these lyrics, “On State Street, that great street…”
That was then. Perry Laufenberg reports on LinkedIn, an office building at 401 South State, across from the Chicago Public Library, sold for $66 million in 2016 and just $4.2 million in October of this year!
Oct 2025 Sales Price: $4.2 million ($8.75 per SF) 👀
2016 Sales Price: $66 million
Another historic office building in Chicago’s Loop has changed hands at a price that shows just how far distressed assets can fall. The landmark property at 401 S. State Street, originally built in 1891 by architect William Le Baron Jenney, was sold at auction for just $4.2 million… a 94% discount from the previous sale.
Vacant since Robert Morris University moved out in 2020, the building sat in financial limbo for years, controlled by a CMBS lender after the previous owner defaulted.
What comes next is still unclear, but the buyer’s involvement in a nearby 400-unit office-to-residential conversion hints at the direction. The Clark Adams Building project, backed by nearly $68 million in public funds, is part of a broader push to bring affordable housing into the urban core.
With its full-block footprint and historic designation, 401 S. State offers strong potential for a creative, mixed-use future.
