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Last night, the U.S. reported November factory orders rising 2.7% month-on-month, beating expectations and the prior reading. Durable goods orders (final) increased 5.3% MoM, while core durable goods orders (final) rose 0.4%, mainly driven by transportation. Initial jobless claims came in at 209,000, slightly above the four-week average of 206,000; continuing claims stood at 1.827 million, marking the fourth consecutive weekly decline, indicating a labor market showing steady but modest growth. At the Treasury’s 7-year note auction overnight, the combined share of direct and indirect bidders was 89.1%, down from 90.6% previously. The bid-to-cover ratio was 2.45 times, slightly lower than the prior 2.51 times. The auction yield was 4.018%, roughly in line with the secondary market at the bidding deadline. With U.S. equities correcting and gold and silver prices erasing earlier gains, risk-off sentiment lent mild support to Treasuries. The 2-year Treasury yield fell 1.2 bps to 3.56%; the 5-year dropped 1.2 bps to 3.82%; the 10-year declined 1.2 bps to 4.23%; and the 30-year edged down 0.2 bps to 4.85%. On the curve, long-end steepening continued — the 2s10s spread widened to +67.2 bps and the 5s30s spread to +103.7 bps. Given month-end portfolio rebalancing flows, the 10-year Treasury yield is expected to remain range-bound between 4.20% and 4.26%. The U.S. is set to release PPI data later today.