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A Calm Before The Week's Storm?

US TSYS
  • Cash Tsys slightly pare Friday’s surge on the back of softer than expected average hourly earnings growth in the payrolls report before a significant downside miss in ISM service, with front end yields still more than 20bps down from Friday’s pre-data high. A relatively calm start to the week that includes Powell speaking tomorrow and CPI on Thursday.
  • 2YY +2.9bps at 4.276%, 5YY +3.1bps at 3.729%, 10YY +4.1bps at 3.599% and 30YY +4.6bps at 3.734%.
  • TYH3 trades 5 ticks lower at 114-02 on average volumes, fading at the start of the London session before broadly tracking sideways. It remains close to Friday’s late high of 114-11+ after which sits resistance at 114-17 (76.4% retrace of Dec 13 – 30 bear leg).
  • Fedspeak: Bostic (’24) 1230ET, Daly in WSJ interview (’24) 1230ET
  • Data: Limited to Consumer credit, Nov (1500ET)
  • Bill issuance: US Tsy $57B 13W, $48B 26W bill auctions (1130ET)

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