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Mildly Bull Steeper Ahead Of A Light Docket

US TSYS
  • Cash Tsys trade 0-2.5bp richer on the day, with strength led by the front end for a modest bull steepening that was seen with the open and maintained ever since. 2s10s at -51bps is off Friday’s low of -54.7bps that otherwise marked the lowest since late September.
  • TYH4 at 112-18 has pulled off an earlier high of 112-21+. The trend needle points north with resistance at 112-28+ and 113-12+ (Fibo projections of the Oct 19 – Nov 3 – Nov 13 price swings).
  • Today sees a light docket, led by the NAHB housing index and solid bill issuance, with flow and headlines likely in the driving seat. Goolsbee's interview with CNBC is of less note after his weekend remarks.
  • Data: NY Fed Services Dec (0830ET), NAHB housing index Dec (1000ET)
  • Fedspeak: Goolsbee on CNBC (0830ET)
  • Bill issuance: US Tsy $75B 13W, $68B 26W bill auctions (1130ET)

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