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Ylds Lower, Curves Bull Fatten Ahead Wed's Nov FOMC Minutes


Tsys stronger, near late session highs after the bell, yield curves bull-flattening to new all-time lows (2s10s -76.451), 30YY slip to 3.8153% low.

  • KC Fed President Esther George Tuesday said the large savings buffer Americans possess is likely to require higher interest rates to keep a lid on consumer spending.
  • "High savings is likely to provide momentum to consumption and require higher interest rates," she said in remarks at a conference held by the Central Bank of Chile, estimating Americans continue to hold on to USD2.3 trillion in excess savings relative to pre-pandemic levels.
  • Heavy overall volumes, TYZ2 appr 3M - tied to Dec/Mar rolling ahead Wed, Nov 30 first notice (Mar24 takes lead), over 1.9M TYZ/TYH spds trade after the close makes appr 1.1M not roll-tied, average volumes.
  • Tsys pare gains after $35B 7Y note auction (91282CFY2) tail: 3.890% high yield vs. 3.862% WI; 2.33x bid-to-cover vs. 2.43x last month.
  • Reminder: Weekly jobless claim rolled to Wednesday due to Thursday's Thanksgiving Holiday mkt close (followed by early noon close Fri, Globex at 1215ET, NYSE and Nasdaq at 1300ET). Note on Tsy bill auctions: competitive closing time for 4- and 8W bills earlier than the usual 1130ET to 1000ET, followed by 17W bill auction at 1130ET.

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