Bonds Steady as Equities Rebound

Treasury prices may have slipped a bit here and there in overnight trading, but yields are little changed as markets prepare to open. The Treasury Ten-Year is still around 85 basis points and the Long Bond is still just below 1.60%. After taking a breather yesterday, the rally in equity markets looks to resume once again as optimism over the coming vaccine distribution has ramped up investor enthusiasm. Crude oil is little changed at just over $45 while the price of gold has rebounded over $30 to $1,810.

A little later this morning, Markit U.S. is expected to confirm last week’s preliminary reading of its November PMI for Manufacturing at 56.7 just before the Institute of Supply Management reports its own Manufacturing PMI. The ISM Index is expected to have dipped to 58 last month from October’s 59.3. We should also get a report from the Census Bureau telling us that Construction Spending rose 0.8% in October. Wards Automotive Group will also be reporting Total Vehicle Sales for November and October’s 16.2M annualized pace is expected to have slowed slightly to 16.1M.