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Free AccessRetreating Alongside Other Safe Havens With 2-/5-Yr Supply Eyed
Treasuries dropped sharply between ~0315-0400ET in European trading alongside other safe havens, but other than that has been a fairly quiet overnight session to start the week (flat trade in Asia-Pac amid Japan holiday).
- Vaccine optimism remains the theme w AZN/Oxtord efficacy results out earlier (0200ET) w global equities advancing and USD retreating. Supply also eyed with 2-Yr and 5-Yr Note auctions later.
- Dec 10-Yr futures (TY) down 4.5/32 at 138-11.5 (L: 138-09 / H: 138-17.5)
- The 2-Yr yield is up 0.4bps at 0.1614%, 5-Yr is up 1.3bps at 0.3844%, 10-Yr is up 2.3bps at 0.8472%, and 30-Yr is up 2.8bps at 1.5472%.
- Chicago Fed Oct nat'l activity index at 0830ET; prelim Nov PMIs at 0945ET.
- A few Fed speakers today; again COVID/econ outlook and Tsy lending facility expiration likely in focus: Richmond's Barkin at 1230ET, SF's Daly at 1300ET, Chicago's Evans at 1500ET.
- Busy supply schedule in a holiday-shortened week. We get $56B 2-Yr Note sale at 1130ET, alongside $51B of 26-wk bills, and $57B 5-Yr Note auction at 1300ET, alongside $54B in 13-wk bills. NY Fed buys ~$1.750B of 20-30-Yr Tsys.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.