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Barrage Of Supply And Fed Speakers Continues

US TSYS SUMMARY

An early Tsy rally in European trading following weak French PMIs was snuffed out, with global safe havens gradually headed lower against a backdrop of rising equities and decent German/UK PMI figures. The U.S.'s turn for flash Sep PMIs comes at 0945ET.

Overall, within ranges though, and middling volumes (TYZ0 ~180k). Dec 10-Yr futures down 3/32 at 139-17 (L: 139-16 / H: 139-21.5). Flattening overnight has largely reversed: the 2-Yr yield is down 0.2bps at 0.1328%, 5-Yr is down 0.2bps at 0.2644%, 10-Yr is up 0.2bps at 0.6724%, and 30-Yr is up 0.1bps at 1.4239%.

A slew of Fed speakers awaits: Cleveland's Mester at 0900ET, Chair Powell doing more Congressional testimony at 1000ET, Chicago Fed's Evans speaking at MNI's online event at 1100ET, Boston's Rosengren at 1200ET, Minn's Kashkari and Atlanta's Bostic (in separate events) at 1300ET, VC Quarles at 1400ET, and finally, SF's Daly at 1500ET.

The constant barrage of supply continues at 1300ET with $22B in 2-Yr FRN and $53B 5-Yr Note sold at auction. Prior, at 1130ET, we get $55B in 105-/154-day bills. NY Fed buys ~$1.225B of 7.5Y-30Y TIPS.

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