Reply To: Traders Market Weekly: Holiday Sales and Jobs


U.S. Treasuries are on track for a modestly lower start in most tenors with 10s and 30s expected to show relative strength in the early going. Treasury futures dipped last evening but recovered their early losses during the Asian session. However, renewed selling picked up once the focus turned to Europe, sending futures to fresh lows.

Concerns about growth in China remained at the forefront after the country’s lockdown measures were expanded. Aiming to free roughly CNY500 bln in liquidity, the People’s Bank of China lowered its reserve requirement ratio by 25 bps.

In Europe, Germany’s GDP was revised higher in the second estimate for Q3, but GfK Consumer Confidence disappointed once again.

The U.S. session, which is set to end an hour early at 14:00 ET, will not feature any data.

The U.S. Dollar Index is up 0.3% at 106.14.

Yield Check:
2-yr: +2 bps to 4.49%
3-yr: +4 bps to 4.25%
5-yr: +2 bps to 3.91%
10-yr: UNCH at 3.71%
30-yr: UNCH at 3.74%