The coupon curve initially flattened ahead of the 2-year note auction, but later steepened as losses at the long-end outpaced the front. Two-year yields backed significantly higher over the past 24 hours, which helped the $27 billion auction go smoothly and provided some relief by midday.
Yet Treasuries suffered further as the shortened pre-holiday session and asset allocation into stocks drove prices sharply lower. Data standouts were jobless claims (-16K), durable goods (+2.8%) and Chicago-PMI (54.3).
The Treasury market will be closed for the Thanksgiving holiday. Friday's session will warp up early, at 2:00 p.m. ET.