Gaining After The Long Weekend

Tsys are pushing higher coming out of the long weekend as equities have faltered, with front TYs enjoying good volume (~400k). The curve has bull flattened, and the dollar's a little stronger, mainly against the British pound (due to no-deal Brexit fears).

Dec 10-Yr futures (TY) up 9/32 at 139-10 (L: 139-00.5 / H: 139-08.5) The 2-Yr yield is down 0.4bps at 0.1389%, 5-Yr is down 2.4bps at 0.2753%, 10-Yr is down 3.3bps at 0.6853%, and 30-Yr is down 4.2bps at 1.429%.

Not much to point to for the move lower in risk appetite, but noteworthy that tech continues to look heavy (Nasdaq futs -2.4%, easily underperforming).

It's a quiet start to the abbreviated week for data, nothing really impactful until jobless claims on Thursday. And Fed's in blackout ahead of next week's FOMC

Decent gov't supply slate today though with six auctions over three time slots. 3-Yr note ($50B) the highlight at 1300ET, alongside 52-week bills. Over course of session we'll get sales of 13-,26-, and 52-week bills totalling $139B, and 42-/119- day CMB for $60B. Looks to be a heavy corporate supply day too.

NY Fed buys ~$1.75B of 20-30-Yr Tsys.