Year End Support Pushes Stocks to New All-Time High

Tsy futures traded mixed on extremely light post-Christmas holiday volumes by the close: TYH2 just over 418k, no surprise with London closed through Tuesday in observance.

• Bonds outperform all session yield curves flatter (5s30s -3.06 at 62.95), futures trading near upper half narrow range.
• Equities climb to new all-time highs, ESH2 4776.0; Gold pared early losses -0.97 at 1809.30 late; West Texas crude +1.89 at 75.68.
• Limited data: Dallas Fed Manf. Activity Index 8.1 vs. 11.8 prior
• Not much of a react to the weak 2Y sale, Tsy futures remain mixed, short end weaker after $56B 2Y note auction (91282CDR9) tailed: 0.769% high yield vs. 0.762% WI; 2.55x bid-to-cover outpaces Nov's 2.36x and well over five auction avg: 2.49x. $57B 5Y Note auction tomorrow.
• QE: NY Fed buy-operations pause for holidays, resume January 3.
• Headline watching: Russia said on Saturday it was pulling back about 10,000 troops from near the Ukrainian border in an unexpected major de-escalation, MSN.
• FT reported US will lift travel bans imposed last month on eight African countries. Foreign nationals travelling to the US from those countries will be allowed to board flights to America from midnight on December 31.
• The 2-Yr yield is up 1.9bps at 0.7069%, 5-Yr is up 0.8bps at 1.2499%, 10-Yr is down 1.2bps at 1.4807%, and 30-Yr is down 2.1bps at 1.8846%.