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Edging Higher

US TSYS SUMMARY

Treasuries have edged higher in early Thursday trade with the curve flattening, and stock futures a little off session highs. 30-Yr supply and Jobless Claims awaited.

  • A fairly quiet overnight session, with few impactful headlines, and mainly flow-related factors driving price movement amid sub-par volume (front TYs < 200k).
  • The 2-Yr yield is down 0.2bps at 0.1488%, 5-Yr is down 0.8bps at 0.334%, 10-Yr is down 1.7bps at 0.7702%, and 30-Yr is down 2.2bps at 1.5642%. Dec 10-Yr futures (TY) up 3.5/32 at 138-26.5 (L: 138-22.5 / H: 138-28).
  • Last night's VP debate appears to have had little impact. Pres Trump appears on Fox News at 0800ET; Speaker Pelosi has a weekly news conference at 1045ET.
  • Jobless claims highlight the data docket at 0830ET. A few Fed speakers too, incl KC's George (0915ET), Boston's Rosengren (1210ET), Atl's Bostic (1400ET), Dallas' Kaplan (1830ET).
  • $65B of 4-/8-week bill sales at 1130ET, followed by $23B 30-Y Bond reopen at 1300ET NY. Fed buys ~$2.425B of 1-7.5Y TIPS.

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