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Bull Flatter Through London Trade - Data, 2Y Supply And Bowman Ahead

US TSYS
  • After the 10Y yield touched fresh cycle highs in Asia hours, cash Tsys have since bull flattened through London hours to chip away at yesterday’s more notable bear steepening.
  • Benchmarks range from 0.5bp to 2.5bp richer to leave 2s10s still elevated (by recent standards) at -61bps off latest highs of -58bps.
  • TYZ3 trades 00-6+ higher at 108-12 for 1 tick below session highs, on decent volumes of 380k. It’s back within yesterday’s range after earlier extending lows with 108-00+ to build on yesterday’s clearance of 108-08. Resistance is seen at the round 108-00 after which lies 107-23 (1.236 proj of Jul 18 – Aug 4 – Aug 10 price swing).
  • Today sees a range of data releases covering housing activity/prices and business & consumer surveys, before further Fedspeak from Gov. Bowman at 1330ET.
  • Note/bond issuance: US Tsy $48B 2Y note auction (1300ET). 2Y yields have pulled back from post FOMC highs nearing 5.20% to currently 5.12%.
  • Bill issuance: US Tsy $60B 42D bill CMB auction (1130ET)

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