BRAZIL: BRL Recovers, S&P Manufacturing PMI Data Due

• MNI: US MBA: MARKET COMPOSITE -1.4% SA THRU NOV 28 WK

• EUR/USD: $1.1600(E611mln), $1.1625(E697mln)
• EUR/GBP: Gbp0.8885(E505mln)
• NZD/USD: $0.5730(N$622mln)

Treasuries trade modestly bull steeper, partly better reflecting the latest increase in the likelihood that NEC’s Hassett is chosen as the next Fed Chair. Volumes are thin however ahead of the start of this week’s more notable labor releases plus ISM services for November before next week’s FOMC decision and new economic forecasts.  

• Cash yields are 1-2bp lower on the day.
• 5s30s has extended yesterday’s steepening, currently at 109.7bp having earlier nudged 110bps to test steepest levels since the first half of September.
• TYH6 trades at 113-01 (+04+) on very thin cumulative volumes of 215k, steadily rising off yesterday’s latest low of 112-22 but still some way from reversing Monday’s losses attributed to rate locks and speculative selling.
• Support is seen at that 112-22 before 112-10+ (Nov 20 low), having already breached an important support at the 50-day EMA, whilst resistance is seen at 113-11 (Dec 1 high) before 113-22+ (Nov 25 high).
• Data: Weekly MBA mortgage data (0700ET), ADP employment Nov (0815ET), Import/export prices Sep (0830ET, shutdown catch-up), IP/Cap Util Sep (0915ET, shutdown catch-up), S&P Global US services PMI Nov final (0945ET), ISM Services Nov (1000ET)
• For more context here, see US OUTLOOK/OPINION: ISM Services Seen Dipping In Nov Despite More Optimistic PMI (Dec 2, 1600ET) and US OUTLOOK/OPINION: Weekly Tracking Suggests ADP Downside Surprise (Dec 3, 0608ET)
• Bill issuance: US Tsy $69B 17W bill auction (1130ET)
• Politics: Trump to make an announcement (1430ET)