UST volumes "uninspired" @ 52%
From ‘while you slept’ TO days end it would seem to me that not much has transpired and while there is a bit of a risk OFF bid in the bond (with some curve flattening), a few days view (of an HOURLY 30yy chart via investing.com)
Again to suggest this bid was some sort of grand stop-A-thon would be somewhat misguided … As per a UST closing commentary (can you imagine writing TWICE a day?), with specific reference TO illiquidity (both time of year AND today),
… Our interest in the final weeks of the year isn’t solely an academic one; after all, the low liquidity environment and limited staffing/risk-taking have historically contributed to choppy price action around the calendar turn. Given the one-sided nature of positions throughout the bulk of 2021, we’re open to a particularly volatile year-end. Moreover, our core tenet that the departure point for a repricing matters continues to hold. In the context of bearish Q1 expectations as the reopening and reflation trades are reset in January, the extent to which 10s and 30s can retain a solid bid through the holidays will inform our initial targets as the market once again embraces a path toward higher yields.
Volumes were at uninspired levels on Monday with cash trading at 52% of the 10-day moving average. 5s were the most active issue taking a 32% marketshare with 10s following at 25%. 2s and 3s combined for 26%, each taking 13%. 7s garnered 8%, 20s claimed a modest 2%, and the long bond rounded out the curve with an 8% allocation…
Emphasis MINE. More about nothing another time!