2 & 5 year auctions today
November 27, 2023
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–Friday’s shortened session featured higher rates. Tens up 6.6 bps to 4.48%. SOFR contracts from March’25 to March’27 were down 6 to 6.5 bps. Rate futures up slightly this morning, regaining part of Friday’s losses. Equities marginally lower, with BBG citing China’s weaker Industrial profits, +2.7% in Oct from +11.9% in Sept (annual rates). “For the first ten months of 2023 profits fell 7.8% from the same period last year…” The Beijing Stock Exchange has ordered large shareholders to stop selling.
–But let’s talk about GOLD! GCZ3 now 2015/oz, testing a big resistance area from 2015 to 2025. WTI down 1.38, nearing $74/bbl and VIX ended at just 12.46 Friday.
–Two and five year auctions in the US today. When-issued yields were 4.92% and 4.48% on Friday. New Home Sales expected 0.723 from 0.759 last. Dallas Fed Mfg expected -17. PCE Prices are Thursday.
