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Quiet Day For Tsys, Small Rally Emerging

US TSYS

Quiet day for Tsys so far with no discernible reaction to early Fedspeak or data, with small rally emerging before 10Y TIPS auction at 1300ET.

  • Tsys seeing small rally of 0.5-1.5bps across the curve, with 10Y yield approaching session lows of 1.580% for a 7bp rally from yesterday's highs as it slowly unwinds the general sell-off trend seen since 9 Nov.
  • Fedspeak: Evans and Daly still to come today before Waller and Clarida tomorrow.
  • No data tomorrow. Waiting on CBO scoring of Biden's BBB, currently delaying the House vote and estimated to be finished Friday but with a chance of later today.
  • 10Y TIPS auction ahead at 1300ET along with busier corporate pipeline.
  • Next week's Tsy auction schedule is front-end focused ahead of Thanksgiving on Thursday, with 2s, 5s and 7s on offer.
  • Next scheduled NY Fed purchase tomorrow for TIPS 1Y-7.5Y (appr $1.775B), 1010-1030ET.

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