Yield Retrace, But Still Way Below Pre-Holiday Levels

Treasuries are retracing after Friday's massive rally, amid speculation over the medium-term implications of the newly-discovered Omicron COVID variant.

• The 2-Yr yield is up 4.1bps at 0.5393%, 5-Yr is up 6.3bps at 1.2225%, 10-Yr is up 6.2bps at 1.5346%, and 30-Yr is up 5.6bps at 1.877%. Of course this is after one of the biggest rallies in recent years on Friday, and yields still much lower vs pre-Thanksgiving.
• Fed speakers include NY's Williams and Chair Powell making remarks at a NY Fed innovation event at 1500/1505ET, respectively; NY Fed VP Hassan moderates a panel at that event at 1515ET. Then Gov Bowman takes part in a discussion on central banks and indigenous communities at 1705ET. Relatively more focus on Powell's Congress hearing Tues / Weds.
• D.C. resumes business today: Pres Biden speaks on Omicron at 1145ET, and on the supply chain at 1545ET. Senate back in session, House tomorrow - immediate focus on gov't funding, with shutdown set for end-of-day Dec 3 (and an eye on Dems social spending bill).
• Pending home sales kicks off the week's data at 1000ET, with Dallas Fed Manuf at 1030ET.
• Supply is all bills ($108B combined 13-/26-wk at 1130ET). NY Fed buys ~$7.375B of 2.25-4.5Y Tsys.