US TSY FUTURES: BLOCK: Dec'26 5Y Sale

• US TSY 17W BILL AUCTION: HIGH 4.105%(ALLOT 43.02%)
• US TSY 17W BILL AUCTION: DEALERS TAKE 30.19% OF COMPETITIVES
• US TSY 17W BILL AUCTION: DIRECTS TAKE 10.14% OF COMPETITIVES
• US TSY 17W BILL AUCTION: INDIRECTS TAKE 59.67% OF COMPETITIVES
• US TSY 17W BILL AUCTION: BID/CVR 3.10

• The 20-year sector of the UST curve continues to underperform its 10- and 30-year counterparts amid higher yields. This dynamic has cheapened the belly of the 10s/20s/30s butterfly from its recent extremes, reversing the massive compression witnessed from the August peaks.
• Following a rapid normalization in the regression residuals, the 20-year sector has reverted toward historical norms. The belly of the butterfly is now trading much closer to fair value relative to the wings, erasing the more severe dislocation seen in late September.

Secretary of State Marco Rubio is shortly due to make a speech in Athens, Greece on "Western civilization and shared values". LIVESTREAM Fox News reports that Rubio will call for the "renewal of Western civilization" and urge allies to "join the United States in rejecting the decline of the West."

• "Secretary Rubio will deliver an address from the birthplace of Western civilization, where he will call upon Americans and Europeans alike to join together in a great renewal of the Western spirit – an inheritance stretching from Athens and Rome to Christendom to the founding of the American Republic," a State Department spokesperson told reporters.