Earnings Reports Boost Stocks, Tsys Unmoved

Tsys are off overnight lows but mostly within late Monday's ranges, alongside equities which have consolidated from yesterday's rout. Data and 2-Yr supply eyed.

• Fairly limited volumes, under 200k traded so far for Dec TYs, which are down 0.5/32 at 138-20 (L: 138-18.5/ H: 138-22).
• Very modest curve steepening: the 2-Yr yield is down 0.2bps at 0.1474%, 5-Yr is down 0.3bps at 0.3477%, 10-Yr is up 0bps at 0.8011%, and 30-Yr is up 0.4bps at 1.595%.
• With pre-election stimulus prospects all but over, market attention remains on the election itself, and COVID case increases globally.
• Strong quarterly earnings reports highlighted by Caterpillar helped boost S&P futures to session highs, but little reaction in Tsys seen so far.
• 0830ET sees prelim Sep durable goods data, with Oct consumer confidence / Richmond Fed Mfg reports at 1000ET.
• In supply, the highlight is $54B 2-Y-Note sale at 1300ET; we get $60B of 42-/119-day bill sales at 1130ET as well. NY Fed buys ~$1.75B of 20-30Yr Tsys.