Today’s Market Update:

Treasury Front End Lags, 2s10s Flattens After 2Y Block Trade

By Edward Bolingbroke

(Bloomberg) —

Front end and belly of Treasury curve lag vs. further-out tenor after $430k/DV01 block trade in 2-year note futures.

  • 10,399 TUH9 contracts traded at 105-2225 at 9:01am ET
  • Shortly afterward, 2s10s tightened onto flattest levels of the session at 12.2bp, more than 2bp off highs reached during Europe session
  • UST 2-year yields cheaper by 2.2bp on the day at 2.733%

Related tickers:
IEF US (iShares 7-10 Year Treasury Bond ETF)
IEI US (iShares 3-7 Year Treasury Bond ETF)
TLT US (iShares 20+ Year Treasury Bond ETF)

To contact the reporter on this story:
Edward Bolingbroke in New York at ebolingbrok1@bloomberg.net

To contact the editors responsible for this story:
Benjamin Purvis at bpurvis@bloomberg.net
Elizabeth Stanton

 

Treasury Yields

Term  Current  Last Month
3 Month2.381%2.345%
6 Month2.535%2.514%
2 Year2.723%2.924%
5 Year2.711%3.035%
10 Year2.854%3.182%
30 Year3.125%3.384%
Yields updated each morning.
Source: Bloomberg

Benchmarks

PRIME5.25%
DJIA24,243.32
Crude Oil$51.69
YEN112.96
Gold$1,244.77
1 Year CMT2.68%
1 Month LIBOR2.40%
Fed Funds Effective2.19%
Next FOMC MeetingDecember 18-19
Source: Bloomberg

Economic Indicator Calendar

12/10/2018JOLTS Job Openings Oct 7100707970096960
12/11NFIB Small Business Optimism Nov 107.0107.4
PPI Final Demand MoMNov0.0%0.6%
PPI Ex Food and Energy MoMNov 0.1%0.5%
PPI Ex Food, Energy, Trade MoMNov 0.2%0.2%
PPI Final Demand YoY Nov 2.5%2.9%
PPI Ex Food and Energy YoY Nov 2.5%2.6%
PPI Ex Food, Energy and Trade YoY Nov 2.8%
12/12MBA Mortgage Applications Dec 7 2.0%
CPI MoMNov 0.0%0.3%
CPI Ex Food and Energy MoM Nov 0.2%0.3%
CPI YoY Nov 2.2%0.2%
CPI Ex Food and Energy YoY Nov2.2%2.5%
CPI Index NSA Nov 252.000252.885
CPI Core Index SA Nov 259.401258.939
Real Avg Weekly Earnings YoYNov 0.9%0.8%
Real Avg Hourly Earnings Nov 0.7%0.6%
Monthly Budget Statement Nov -$196.0b-$100.5b
12/13Import Price Index MoMNov -1.0%0.5%
Export Price Index YoYNov 3.1%
Initial Jobless Claims Dec 8227k231k
Continuing Claims Dec 11649k1631k
Bloomberg Dec. United States Economic Survey
Bloomberg Consumer Comfort Dec 960.3
12/14Retail Sales Advance MoMNov 0.1%0.8%
Retail Sales Ex Auto MoMNov 0.2%0.7%
Retail Sales Ex Auto and Gas Nov 0.4%0.3%
Retail Sales Control Group Nov 0.5%0.3%
Industrial Production MoMNov 0.3%0.1%
Capacity Utilization Nov 78.6%78.4%
Manufacturing (SIC) Production Nov 0.3%0.3%
Markit US Manufacturing PMI Dec 55.155.1
Markit US Services PMI Dec 54.654.7
Business Inventories Oct 0.6%0.3%
12/17Empire ManufacturingDec 20.423.3
NAHB Housing Market Index Dec 6160
Total Net TIC Flows-$29.1b
Net Long-term TIC Flows -$30.8b
Source: Bloomberg