Reply To: Traders Market Weekly: Another Year, Another Reset

#50010
Truman
Participant

U.S. Treasuries are on track for a mixed open with 10s and 30s expected to show slight relative strength in the early going while shorter tenors are on course to begin just below their flat lines.

Treasury futures began dipping last evening, continuing their slow retreat into the night. The market reached lows about an hour ago, and currently trades just above those levels. Overnight action was headlined by news that China will lift all coronavirus-related restrictions on incoming international travelers on January 8 while Japan will begin requiring negative coronavirus test for visitors from China before the end of the year.

The U.S. session will feature a $42 bln 2-yr Treasury note auction that will precede sales of 5- and 7-yr notes over the next couple days.

Yield:
2-yr: +3 bps to 4.34%
3-yr: +1 bp to 4.10%
5-yr: +1 bp to 3.87%
10-yr: -1 bp to 3.74%
30-yr: -2 bps to 3.81%