U.S. Treasury prices went into a virtual free-fall after initial jobless claims data came in down 15K, indicating the economic situation is not as dire as the market had priced in. Later, the November University of Michigan consumer confidence index served to support the positive outlook, coming in at 83.9 vs the preliminary reading of 83.5 and the Oct. release of 82.7. The reaction in benchmark treasuries was immediate and furious. Cash treasuries got hit across the curve. However, trading was characterized as exaggerated and illiquid in pre-Thanksgiving action, ahead of an early close Wednesday. The 11:30 a.m. announcement of an upsized ($21.0 billion) 2Y note auction was greeted with little to no reaction. The auction takes place next Wednesday, Nov 28. Despite a modest comeback, treasury yields ended considerably higher across the curve on a 3:00 p.m. to 1:00 p.m. basis. The 2Y yield was up by 14.8 basis points to end at 3.089%. The 5Y yield rose 13.3 basis points to end at 4.317%. The 10Y yield added 10.5 basis points to end at 4.972%. The 30Y yield rose 4.5 basis points to end at 5.357%.