The price of US Treasury bonds rose on Monday, mainly driven by the December Institute of Supply Management's manufacturing index being weaker than expected, and also driven by capital flows likely related to corporate bond issuance. The scale of issuance on Monday was the highest in a single day since October. There is clear bullish momentum in the US Treasury options market, and there is strong demand for positions betting that the 10-year yield will drop to at least 4% in the next few weeks. Buying 5-year and 10-year treasury bond futures through bulk transactions also supports the market. Notable futures transactions include 20,000 lots of 5-year Treasury futures and 15,000 lots of 10-year Treasury futures during the early trading session of the US.

The price of US Treasury bonds rose on Monday, mainly driven by the December Institute of Supply Management's manufacturing index being weaker than expected, and also driven by capital flows likely related to corporate bond issuance. The scale of issuance on Monday was the highest in a single day since October. There is clear bullish momentum in the US Treasury options market, and there is strong demand for positions betting that the 10-year yield will drop to at least 4% in the next few weeks. Buying 5-year and 10-year treasury bond futures through bulk transactions also supports the market. Notable futures transactions include 20,000 lots of 5-year Treasury futures and 15,000 lots of 10-year Treasury futures during the early trading session of the US.