Veterans Day Will Sap Liquidity, Cash Closed

T-Notes operate just off Tuesday's worst levels, last +0-02 at 137-16.

• The curve saw some light bear steepening on Tuesday, with 10s underperforming as issuance dynamics and continued optimism surrounding the COVID-19 vaccine developments were at the fore.
• Pricing of the latest round of 10-Year Tsy note issuance was firm enough, as the auction stopped through WI by 0.2bp, although the cover ratio was sub-par and the dealer takedown jumped.
• Tuesday's slew of Fedspeak generally added little new to the broader dynamic/discussion. On that front, Boston Federal Reserve President Eric Rosengren told MNI on Tuesday that he would prefer to see the Fed lengthen the average duration of its Treasuries purchases rather than increase buying, adding that more QE overall may be "advantageous" if longer rates rise amid a challenging next six months.
• A reminder that the cash Tsy space is closed on Wednesday, owing to the observance of the Veterans Day holiday in the U.S.