U.S. Interest Rate Markets

Dec 10-year T-notes this morning are down -8 ticks. Thursday's closes: TYZ8 +20.50, FVZ8 +10.25. Dec 10-year T-notes on Thursday rose to a 1-week high and closed sharply higher on the plunge in the S&P 500 to a 3-1/4 month low, which boosted the safe-haven demand for T-notes and was dovish for Fed policy. T-notes were also supported by the weaker-than-expected U.S. Sep core CPI report and reduced inflation expectations after the 10-year T-note breakeven inflation rate fell to a 3-week low.