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Bonds Bouncing Ahead 20Y Sale

US TSY FUTURES

Tsy futures bouncing, but still off morning highs heading into the 20Y Bond reopen

30YY currently 3.5694% (-.0912) vs. 3.0645% just ahead noon.
  • First half support: Tsys gap bid to session highs (30YY 3.5185% low) following weak Retail Sales (-1.0%, ex-motor -0.6%) and weaker PPI (-0.5%, ex food/energy +0.13%) - lowest since Nov'20.
  • Fed funds implied hike for Feb'23 -.7 to 27.2bp, Mar'23 cumulative 45.6bp (-1.8) to 4.788%, May'23 54.5bp (-2.8) to 4.876%, terminal at slips to 4.875% in Jun'23 from 4.905% earlier.

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