Bonds Consolidate Off Highs

U.S. Treasuries stalled into a high-end range in a quiet session late Monday to start a week with a run of key data including the employment report Friday and filled with a crush of Federal Reserve speakers. The market followed European bonds early and recovered some ground as stocks slipped. The 10-year led the move while the two-year lagged, tilting the curve along a flatter slope.

Traders were looking out to data which includes the preliminary Q3 gross domestic product (GDP), November consumer confidence and September home prices reports along with speeches from New York Fed President WIlliam Dudley and Governor Jerome Powell Tuesday. The November ADP private payrolls guesstimate, October pending home sales as well as personal income and spending are due Wednesday, with Cleveland President Loretta Mester, Dallas head Robert Kaplan and Powell speaking late. Thursday has the weekly jobless claims, November Markit and Institute for Supply Management purchasing managers’ indices (PMI) while Mester speaks again. Friday offers the marquee data point, the November employment report with Governors Lael Brainard and Daniel Tarullo speaking at either end of the session.

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