T-Bond Futures Market News and Commentary
Dec 10-year T-notes (ZNZ20) on Wednesday closed down -4 ticks. The 10-year T-note yield rose by +2.7 bp to 0.813%.
Dec 10-year T-note prices on Wednesday tumbled to a 4-1/4 month low, and the 10-year T-note yield jumped to a 4-1/4 month high of 0.834%. T-notes retreated Wednesday on concern that passage of additional pandemic stimulus will explode the U.S. budget deficit and require the Treasury to issue a massive amount of new debt. T-notes recovered from their worst levels on dovish comments from Fed Governor Brainard.
Stocks on Wednesday moved higher and undercut T-note prices on heightened optimism U.S. lawmakers will pass a pandemic relief package. White House Chief of Staff Meadows said on Wednesday that "the last 24 hours have moved the ball down the field," and the goal is "some kind of stimulus deal in the next 48 hours or so." Treasury Secretary Mnuchin and House Speaker Pelosi are scheduled to speak again Wednesday afternoon. A new stimulus deal would mean t... Read more