GOLD: Strong Start To New Year After Best Year Since 1979

• China's bond futures are higher today,  after yesterday's losses.  
• The 10-YR is up +0.01 at 107.985, remaining below all major moving averages.  The nearest above is the 50-day EMA of 108.045
• The 2-Yr is up +.01 at 102.404 and on its downside is near to the 20-day EMA of 102.40, with topside resistance at 102.422 via the 100-day EMA.  
• Cash is steady with the 10-Yr -0.7bps lower at 1.83% and the 2-Yr at 1.416%

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US bond futures are all trending modestly higher with the 10-Yr best performer.  TYH6 is up +03 at 112-31+ as it nears the 20-day EMA above of 113.

Cash is better across the curve with yields lower by up to 1.5bps with the short end outperforming.  

• The 2-Yr is down -1.4bps to 3.498%
• The 5-Yr is down -1.4bps to 3.645%
• The 10-Yr is down 1bps at 4.078%
• The 30-Yr is down -0.9bpsbps at 4.739%

President Donald Trump said he plans to announce his selection to lead the Federal Reserve in early 2026 and teased National Economic Council Director Kevin Hassett as his possible choice on Tuesday, fueling further speculation about the next leader of the US central bank.

At the Tokyo lunch break, JGB futures are weaker, -20 compared to settlement levels.

• (Dow Jones) “Japanese government bond yields are higher as expectations for a near-term rate increase by the Bank of Japan continue. The BOJ's policy board is scheduled to meet on Dec. 18-19 for a final rate decision for the year. To gauge the economy's strength, investors will be focusing on economic indicators, including household spending data due Friday.”
• Cash US tsys are in today's Asia-Pac session after
• Cash JGBs are flat to 1bp cheaper across benchmarks, with the 7-10-year zone underperforming. The benchmark 10-year yield is at 1.877% versus the cycle high of 1.88%, set before yesterday’s strong 10-year auction.
• Swap rates are little changed.

Source: Bloomberg Finance LP