Not The New Year Resolution You Were Thinking Of?

Rates traded largely weaker by the closing bell, Treasury futures well off midmorning lows amid deceptively heavy over all volumes, TYH1 over 1.86M after the bell.

• Another low data-risk session, rates buffeted by ongoing political headline risk and global Covid case surge. House convening Tuesday evening at 1930ET to vote on the 25th amendment resolution to remove Trump from office after last Wed's violent siege in DC Capitol. CAD$ hit after headline "ONTARIO HEALTHCARE IS `ON THE BRINK OF COLLAPSE" while vaccine rollout remains slow.
• Not a lot of correlation between rates and stocks, Tsys ignored a late morning sell-off in equities, while both asset classes traded off lows into late trade. Position squaring, short covering noted in second half. Huge +30k TYH1 Block buy 136-11 helped spur move.
• Tsys rallied after strong 10Y Auction Re-Open: $38B 10Y note auction re-open (91282CAV3) drew 1.164% high yield (0.951% last month) vs. 1.172% WI; 2.47 bid/cover (2.33 previous).
• The 2-Yr yield is unchanged at 0.1449%, 5-Yr is down 0.2bps at 0.5042%, 10-Yr is down 0.8bps at 1.1376%, and 30-Yr is up 0.2bps at 1.8854%.