CANADA: Macklem Helps Extend US Service PMI Driven Rates Rally

• US TSY 19Y-10M BOND AUCTION: NON-COMP BIDS $106 MLN FROM $13.000 BLN TOTAL

A survey from Ipsos has found that a majority of Americans believe that proposed by US President Donald Trump will raise the price of consumer goods.

• Ipsos: "...a majority of Americans (66%) think these tariffs will raise the cost of the goods they buy, according to the latest data from the Ipsos Consumer Tracker. That perception is practically unanimous among Democrats (at 87%), but nearly half of Republicans feel the same."
• Ipsos notes: "We've also seen that high confidence the tariffs will happen in the first place: 81% of Americans think"it's likely that Trump will try to increase tariffs on imports from China and Mexico," according to a recent Ipsos poll for The New York Times."

Figure 1: “To what extent do you agree or disagree with the following? - Tariffs will raise prices on goods I buy”

Source: Ipsos

Tsy futures are trading weaker, near recent lows (TYH5 currently at 108-15, -8.5) ahead today's $13B 20Y-Bond auction re-open (912810UF3) at 1300ET. WI is currently running at 4.910%, 22.4bp cheap to last month's reopen tail:

• December auction recap: Tsy futures hold weaker (TYZ4 trading 111-04.5, -6.5), after $13B 20Y bond auction reopen (912810UD8) tailed again: 4.686% high yield vs. 4.671% WI;
• That kept the consecutive streak of tailed auctions alive at 4 for the 20Y, with the latest sale showing fairly average statistics though better than November (which saw a high yield almost identical to December's sale, at 4.680%):
• Bid-to-cover of 2.50x was likewise unremarkable vs the 5-auction average 2.53x, but better than November's 2.34x.
• Dealers took down 17.9% of competitives (vs 22.6% prior, 14.8% 5-auction average), with indirects 62.0% (69.5% prior, 70.1% avg) and directs 20.1% (7.9% prior, 15.1% avg).
• Timing: today's 20Y note results will be available shortly after the competitive auctions closes at 1300ET.