US TSYS
- Treasuries trade twist steeper after yesterday’s closures for Memorial Day and other regional bank holidays, the steepening taking 2s10s away from YtD lows.
- Cash yields range from 1.7bp lower (2s) to +0.5bps (30s), pivoting after 10s. They underperform Gilts, but both outperform EGBs in catch-up after the latter rallied yesterday on dovish ECB speak.
- TYM4 has kept to reasonably narrow ranges overnight after yesterday’s holiday-thinned session, back at 108-24+ (+02 from Friday’s full close). Key support at 108-15 (May 14 low) remains intact for now whilst resistance is seen at 109-05+ (50-day EMA).
- Treasury issuance can play a large role today with a heavy slate in the Memorial Day-shortened week. Beyond that, data focus should be on the Conf. Board consumer survey after the recent slide in the U.Mich counterpart, whilst keeping an eye on the labor market differential as usual ahead of next week’s payrolls report.
- Data: FHFA/S&P CoreLogic house prices Mar (0900ET), Conf. Board Consumer Survey May (1000ET), Dallas Fed Mfg May (1030ET)
- Fedspeak: Kashkari panel remarks (0955ET, just Q&A), Cook & Daly on AI & economy (1305ET, just Q&A)
- Note/bond issuance: US Tsy to sell $69bn 2Y notes (1130ET), US Tsy to sell $70bn 5Y notes (1300ET)
- Bill issuance: US Tsy to sell $70bn 13-wk bills, $70bn 26-wk bills (1000ET), US Tsy to sell $65bn 42-day CMB (1130ET)
2s10s lift on YtD lowsSource: Bloomberg
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