US TSYS: TYH6 Key Resistance Eyed, Jobless Claims & Earlier Auctions Headline

Treasuries continue to see impact from yesterday’s bull flattening on Bloomberg sources seeing Hassett as a frontrunner for the next Fed Chair role. There have recently been short-lived intraday gains in spillover from Gilts ahead of the UK budget, back to small losses on the day supported by stronger risk sentiment. 

• Thanksgiving schedule. Cash and futures full session today, cash closed & future early close on Thursday, cash & futures early close on Friday.
• Note the earlier auction timings ahead of the Thanksgiving holiday - see below.
• Cash yields are 0.1-0.7bp higher, led by the belly with today's 7Y supply possibly in mind.
• TYH6 trades at 113-18+ (-00+) off yesterday’s latest highs of 113-22+ on solid cumulative volumes of 320k, still boosted by the roll but with it nearing completion.
• Yesterday’s climb saw it step closer to latest resistance at 113-23 (Oct 23 high), increasingly eyeing a key resistance at 113-29+ (Oct 17 high).
• Data: MBA mortgages (0700ET), Weekly jobless claims (0830ET), Durable goods Sep prelim (0830ET), MNI Chicago PMI Nov (0945ET), Dallas Fed weekly economic index (1130ET)
• Fedspeak: Fed Beige Book (1400ET)
• Coupon issuance: US Tsy $44B 7Y Note - 91282CPM7 (1130ET). Yesterday's 5Y tailed slightly by 0.2bp although bid-to-cover increased from 2.38 to 2.41 whilst last month's 7Y auction saw its largest tail in over a year.
• Bill issuance: US Tsy $100B 4W & $85B 8W bill auctions (1000ET), $69B 17W bill auctions (1130ET)
• Politics: No public events scheduled for Trump