U.S. Interest Rate Markets

Dec 10-year T-notes this morning are down -0.5 of a tick. Monday's closes: TYZ8 -1.50, FVZ8 -0.25. Dec 10-year T-notes fell to a 1-1/2 month low and closed lower on negative carry-over from a slide in 10-year German bund prices to a 1-1/2 month low and on supply pressures as bond dealers put on short T-note hedges ahead of $8 billion in corporate bonds offered by Nestle SA to help finance its partnership with Starbucks. T-note prices were supported by the weaker-than-expected U.S. Sep Empire manufacturing index and increased safe-haven demand with the decline in stocks.