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After gap-bid post FOMC, Tsys..........>

US TSY FLOWS
US TSY FLOWS: After gap-bid post FOMC, Tsys at/near session lows after extending
lows(!) during Fed chair Powell's press conf, US$ off lows. Yield curves crushed
after brief widening post FOMC.
- Swap spds wider after the bell, spds surged as Tsys reversed off highs. Move
occurred as Fed chair Powell clarified IOER adjustment is technical, not mon/pol
related, talking up moderating econ environment and commitment to "transitory
factors at work" with core infl in recent months added to move.
- Earlier gains after largest miss in ISM mfg vs. exp in >10yr. Pre/post data
flow included real- and fast$ buyers in 3s, prop and fast$ short covering post
data, forward rollers in 5s and 7s, bank and real$ buying 30s, two-way curve
Blocks: 2s/ultra-10s steepener Block after recent 2s10s flattener.
- On tap for Thursday: Challenger layoff plans; weekly claims; non-farm
productivity and unit labor costs; ISM-NY current conditions; factory new
orders; Fed weekly securities holdings. The 2-Yr yield is up 4bps at 2.3064%,
5-Yr is up 2.5bps at 2.3033%, 10-Yr is up 0.2bps at 2.5035%, and 30-Yr is down
1.9bps at 2.91%

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