Tsys Well Bid On Late Equity Selling

Bonds leading late session rally, levels back up to early overnight highs, yield curves flatter as equities extended session lows after the bell (ESZ0 -23.0).

• Decent overall volumes a little deceiving as session rather a quiet late week affair -- is tied to broad pick-up in Dec/Mar rolling with limited time ahead first notice on Nov 30 w/ Thanksgiving holiday next Thu (Friday early close). Near 350,000 TYZ/TYH and 375 FVZ/FVH rolls traded by the bell.
• Data-lite session, there were several Fed speakers on the session largely repeating the company line of lower for longer, general willingness to extend duration. Chicago Fed Evans on CNBC earlier: Extending maturity of asset purchases 'part of the tool kit'; can increase the size of the balance sheet more quickly if appropriate.
• Evans also said that 13-3 facilities have been "helpful" as a "backstop", says the Treasury's decision not to extend beyond end-year is "disappointing". Says Fed providing substantial monetary support.
• Late headline announced Fed Chair Powell and Tsy Sec Mnuchin will testify before the Senate Banking Committee on Dec 1.
• The 2-Yr yield is down 0.2bps at 0.1594%, 5-Yr is down 0.1bps at 0.3715%, 10-Yr is down 0.3bps at 0.826%, and 30-Yr is down 1.8bps at 1.5273%.