Bid Into The Close

T-Notes a little shy of their late NY peak, last dealing +0-08+ at 131-28.

• To recap, Tsys were bid into the bell on Thursday, with month-/quarter-end duration extensions/rebalancing putting a bid into the space (although extension estimates were by no means large). This left cash Tsys 1.5-3.0bp richer come the bell as the early NY weakness was more than unwound, with the 5- to 10-Year zone of the curve leading the rally, while T-Notes went out near their late NY highs.
• Equities moved to fresh session lows into the bell, which also provided some late support.
• The space looked through a modest uptick in the weekly initial jobless claims print, while the latest MNI Chicago PMI survey revealed a modest slowing in the headline rate of expansion.
• Participants also looked through a slew of Fedspeak and comments from U.S. Tsy Sec. Yellen.
• The stopgap spending bill to fund the U.S. gov't through Dec 3 passed through Congress, as expected.
• Short to intermediate swap spread widening was observed on the day.
• A quick reminder that holidays in China (which will last a week) and Hong Kong (which will return on Monday) will thin out liquidity during Asia-Pac trade. Final manufacturing PMI readings from across the globe will be observed on Friday, with the latest ISM m'fing survey and PCE data set to headline in U.S. hours. We will also get Fedspeak from Harker & Mester.