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Inside Range, Little React Weekly Claims, Dec/Mar Roll Gets Underway

Rates trading firmer after the bell, inside range day for Tsys, short end curves mildly flatter on average overall volumes: TYZ1 just over 1.2M. Pick-up in Dec/Mar quarterly futures rolling contributing to volumes (TYZ/TYH near 100k in late trade.
  • Not much of a react to data: weekly claims slipped -1K to 268K, continuing claims -0.129M to 2.080M; though Philly Fed mfg index climbed 39.0 vs. 24.0 est the report looked very similar to Empire from earlier this week so has less shock for markets (hence very little reaction in Tsys), but inflationary pressures continued to intensify within the details.
  • Not as much of a positive correlation between rates and equities today with the former rallying as equities pared gains after the open (only to recover by noon). Mixed flow two-way positioning/squaring ahead next week's shortened Thanksgiving holiday.
  • No data on tap Friday, but Fed Gov Waller will discuss eco-outlook and take moderated Q&A (1045ET) followed by Fed VC Clarida, discussing global mon-pol coordination, w/ text and moderated Q&A at 1215ET.
  • The 2-Yr yield is up 0bps at 0.4981%, 5-Yr is down 1.1bps at 1.2196%, 10-Yr is down 0.5bps at 1.5838%, and 30-Yr is down 0.8bps at 1.9678%.

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