Bond Market Update

Yields Up

• U.S. Treasuries are weaker amid thin trading conditions. Markets in Europe are closed for Boxing Day and a handful of markets in the Asia-Pacific region, most notably Hong Kong and Australia, remained closed for holiday. Yields are tracking higher across the curve in front of the 8:30 a.m. ET release of the Initial and Continuing Jobless Claims Report and the 1:00 p.m. ET results for the $44 billion 7-yr note auction.
• Yield Check:
  • 2-yr: +2 bps to 4.36%
  • 3-yr: +2 bps to 4.39%
  • 5-yr: +4 bps to 4.48%
  • 10-yr: +4 bps to 4.63%
  • 30-yr: +5 bps to 4.81%

• News:
  • Mastercard SpendingPulse says US retail sales excluding automotive increased 3.8% yr/yr from November 1 through December 24
  • The PBOC left its MLF rate unchanged at 2.00%, as expected, and withdrew a net CNY1.15 trillion that was the largest withdrawal since 2014, according to Bloomberg
  • South Korea's opposition party says it will attempt to impeach acting president Han Duck-soo, driving the Korean won to its lowest level against dollar since the global financial crisis
  • President Biden directed the Department of Defense to continue its surge of weapons deliveries to Ukraine
  • President-elect Trump is expected to roll back many clean energy subsidies, according to New York Times
  • European markets, along with a handful of Asian markets, were closed for holiday
• Commodities:
  • WTI crude: +0.6% to $70.49/bbl
  • Gold: +0.2% to $2641.10/ozt
  • Copper: +0.7% to $4.14/lb
• Currencies:
  • EUR/USD: -0.1% to 1.0394
  • GBP/USD: -0.3% to 1.2515
  • USD/CNH: +0.1% to 7.3057
  • USD/JPY: +0.2% to 157.66
• The Day Ahead:
  • 08:30 ET: Weekly Initial Claims (Briefing.com consensus 232,000; prior 220,000) and Continuing Claims (prior 1.874 mln)
• Treasury Auctions:
  • 13:00 ET: $44 bln 7-yr Treasury note auction results