COVID Caution Carries Over Into Thursday

Caution late in Wednesday's session has carried over into Thursday, with equities heading lower and the dollar higher. COVID lockdown concerns the primary underlying theme. Treasuries have gained slightly against this backdrop, with a bit of bull flattening in the curve.

• That said, volumes unremarkable so far, ~230k in Dec 10-Yr futures (TY) which are up 5.5/32 at 138-11.5 (L: 138-07 / H: 138-13).
• The 2-Yr yield is down 0.2bps at 0.1713%, 5-Yr is down 1bps at 0.3857%, 10-Yr is down 1.8bps at 0.8521%, and 30-Yr is down 2.4bps at 1.5758%
• 0830ET sees weekly jobless claims and November Philly Fed manufacturing, at 1000ET we get Oct existing home sales, and 1600ET Nov KC Fed manufacturing.
• Today's Fed speakers: Cleveland's Mester and Gov Bowman at 1235ET (Mester gives introductory remarks at 0830et), Boston's Rosengren at 1300ET.
• Today rounds out the week's supply, with $65B of 4-/8-wk bills sold at 1130ET, and $12B of 10-Yr TIPS at 1300ET.
• The week's heavy NY Fed operational purchases schedule continues, with buying of ~$3.625B in Tsy 7Y-20Y today.