Bring on 2025
December 31, 2024
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–Yields eased yesterday, with tens down 7.6 bps to 4.543%. Current is 4.52 (pre-open). Year’s range 3.62 to 4.71; the low coincided with the Fed’s initial 50 bp ease in mid-Sept. Tens are currently about 20 bps above the Fed Effective rate.
–BBG article this morning ‘Treasury’s $50 trillion Deluge Will Test Strained Dealer ‘Pipes’
“Issuance has gone up almost threefold in the last 10 years and the anticipation is for it to close to double to $50 trillion outstanding in the next 10 years, whereas dealer balance sheets haven’t grown at that magnitude,” said Casey Spezzano, head of US customer sales and trading at primary markets dealer NatWest Markets and chair of the Treasury Market Practices Group, the government-debt watchdog sponsored by the New York Fed. “You’re trying to put more Treasuries through the same pipes, but those pipes aren’t getting any bigger.”
–Unemployment is Jan 10. Half day now on January 9, in honor of Jimmy Carter. ISM Mfg is this Friday.
PRNewswire/ — CME Group, the world’s leading derivatives marketplace, has announced that it will honor the passing of former President Jimmy Carter by implementing an early close for agricultural, equity and interest rate markets on the National Day of Mourning on Thursday, January 9, 2025.
U.S. equity markets will be open until 8:30 a.m. CT on January 9. All U.S. equity options expiring on January 9 will be moved to expire on Jan 8.
Interest rates and agricultural markets will close at 12:15 p.m. CT on Thursday, January 9.
