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30Y Supply In Focus For Otherwise Thin Docket

US TSYS
  • Cash Tsys hold slightly richer across the curve in consolidation of yesterday’s rally in the second half of the US session, mirroring a further drift lower in Fed rate hike expectations despite Governor Waller saying Fed Governor Waller said: “We have farther to go. And, it might be a long fight, with interest rates higher for longer than some are currently expecting. But I will not hesitate to do what is needed to get my job done".
  • A thin docket with no Fedspeak and only weekly claims for data could see greater emphasis on the upcoming 30Y auction plus the ongoing but dwindling earnings season, with Philip Morris Intl, Paypal and S&P Global still to report today.
  • 2YY -0.6bp at 4.415%, 5YY -0.9bp at 3.780%, 10YY -0.6bp at 3.590% and 30YY -0.7bp at 3.664%.
  • TYH3 trades 8+ ticks higher at 113-21+ on slightly below average volumes. Resistance is seen at 114-02 (50-day EMA) and support at 113-05+ (Feb 7 low).
  • Data: Weekly jobless claims (0830ET)
  • Issuance: US Tsy $21B 30Y Bond auction (912810TN8) – 1300ET
  • Bill issuance: US Tsy $75B 4W, $60B 8W bill auctions – 1130ET

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