Tsys Reverse Friday's Optimism

Tsy futures broadly weaker after the close but off midday lows when 30YY tapped 3.6553% high. Light holiday volumes w/ TYH just over 700k after the close. Yield curves steeper (2s10s +2.604 at-67.630 vs. -64.130 high) but off early session highs amid orderly selling across the board.

• No real catalyst to the move, Tsys initially followed Bunds and Gilts lower early in the first half. Underlying weakness most likely unwinds of last Fri's rally despite the hawkish Fed speak from SF Fed Daly and Cleveland Fed Mester.
• Large 10Y Block sale (-10,120 TYH3 at 114-00, was well through the session low of 114-02.5 at the time (1105:00ET).
• No scheduled Fed speakers today, no react to slightly better than expexted NAHB Housing Market Index (36 vs. 34 est).
• Data picks up Tuesday w/ Building Permits (1.512M rev, 1.499M); MoM (-3.3% rev, -0.9%) and Housing Starts (1.425M, 1.404M); MoM (-4.2%, -1.5%) at 0830ET.
• Christmas holiday hours update:
  • Trading floor closes at 1300ET while Globex close runs to 1600ET. Monday, Dec 26 is a full close w/ Globex reopening 1700ET
  • Link to CME for reference