12/06 No new US$ issuance Friday, $27.1B total priced on the week
STIR: BLOCK: Dec'24 SOFR Midcurve Put Spread
Dec-09 12:04
4,000 0QZ4 95.87/96.12 put spds, 1.0 vs. 96.28/0.15% at 0630:37ET
US TSYS: PBOC Stimulus Sees Bear Steepening But On Low Volumes
Dec-09 11:53
Treasuries are mostly lower on the day after selling impetus following a dovish monetary policy tweak from the PBOC, although volumes have been light as US CPI on Wednesday and approaching year-end seems to weigh on activity.
Cash yields are unchanged (2s) to 2bp higher (30s).
2s10s has steepened to 6.3bps (+1.2bp) but remains within last week’s range.
TYH5 trades at 111-13 (- 01+) off session highs of 111-18+ but has remained within Friday’s range throughout the overnight session, all on very low cumulative volumes of 235k.
Friday’s post-payrolls high of 111-20+ cleared the 50-day EMA and strengthens a bull cycle. It’s now an initial resistance level after which lies 111-23 (38.2% retrace of Sep 11 – Nov 15 bear leg). To the downside, support at 110-18 (Dec 4 low).
Data: Wholesale inventories, trade sales Oct F/Oct (1000ET), NY Fed 1-Yr Inflation Nov (1100ET)
Fedspeak: FOMC media blackout
Bill issuance: US Tsy $81B 13W & $72B 26W bill auctions (1130ET)