CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

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AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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Large, Belly-Led Rally On Covid Risk-Off

US TSYS
  • Cash Tsys have seen a large, belly-led rally today in the wake of the discovery of a new, aggressive Covid variant in Africa. Data on real-world transmissibility or vaccine efficacy could take "several weeks" according to the WHO.
  • The 2Y yield is -13bps at 0.508%, 5Y is -15.5bps at 1.187%, 10Y is -12bps at 1.516% and 30Y is -9bps at 1.870%. This has completely unwound the sell-off earlier this week on the accelerated taper and earlier Fed hike theme.
  • TYZ1 futures are up sharply on the day, currently +1-07 at 131-01 on high volumes despite coming post-Thanksgiving.
  • Separately, S&P500 futures are down -1.8% and oil is down 6-7% today.
  • No US data/auctions today. Cash Tsys will close early at 1400ET/1900GMT per SIFMA recommendation and Tsy futures at 1300ET/1800GMT (although some prices will print until 1315ET).
  • The macro focus next week is Powell testifying on Tue and Wed before non-farm payrolls for Nov on Fri.
  • These are particularly pertinent as money markets have pushed back the second 25bp hike to 2023 and questions arise whether the Fed will slow rather than accelerate the pace of tapering at the Dec 15 meeting.
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