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Producer Prices In Line; UMich Awaited

US TSYS

Nov PPI up 0.1% M/M right in line w consensus, no reaction in Tsys as a result. Arguably more attention on the 1000ET release of prelim Dec UMichigan survey as a gauge of sentiment amid COVID case rises (the Fed will be paying attention ahead of next week's meeting). Curve update:

  • 3M10Y -1.219, 81.554 (L: 80.134 / H: 83.459)
  • 1Y10Y -1.726, 79.268 (L: 77.847 / H: 81.201)
  • 2Y10Y -0.591, 75.555 (L: 74.695 / H: 77.406)
  • 2Y30Y -0.592, 147.684 (L: 147.153 / H: 150.199)
  • 5Y30Y +0.245, 124.237 (L: 123.628 / H: 125.677)

Current futures levels:

  • Mar 2-Yr futures (TU) up 0.875/32 at 110-14.75 (L: 110-13.75 / H: 110-14.75)
  • Mar 5-Yr futures (FV) up 3/32 at 126-01.5 (L: 125-29.75 / H: 126-01.75)
  • Mar 10-Yr futures (TY) up 6/32 at 138-02.5 (L: 137-26.5 / H: 138-04)
  • Mar 30-Yr futures (US) up 18/32 at 174-10 (L: 173-11 / H: 174-04)
  • Mar Ultra futures (WN) up 38/32 at 214-27 (L: 213-13 / H: 214-31)

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