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Change Of Tack On European Lockdown Fears

US TSYS
  • European lockdown fears have spilled over into Tsys with yields down 5-6bps on the day across most tenors as they more than unwind a 3bp rise in early trading. TYZ1 up +0-16 at 131-02+ on decent volumes (>450k), highest since 10 Nov.
  • Fed's Waller (1045ET) and Clarida (1215ET) both of note today, speaking on economic outlook/monetary policy.
  • No data aside from St Louis and NY Fed GDP Nowcasts.
  • Voting on BBB delayed to today after Republican leader McCarthy delayed proceedings, with House reconvening 0800ET. Moderate Dems happy to proceed after yesterday's CBO score.
  • Scheduled NY Fed purchase for TIPS 1Y-7.5Y (appr $1.775B),1010-1030ET
  • Next week's Tsy auction schedule is front-end focused ahead of Thanksgiving on Thursday, with 2s, 5s and 7s on offer.

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