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Bull Steepening With TYM3 Also Testing Session Highs, Flash PMI Ahead

US TSYS
  • Cash Tsys have seen a mixed overnight but one that is currently marked by a bull steepening after a recent rally that continues to extend with 2YY now down almost 6bps intraday. It sees outperformance of core EU FI after flash composite PMIs beat expectations with strong services offsetting weak manufacturing.
  • Latest tax data from late yesterday marginally pushed back on x-date fears, whilst ahead, the flash US PMI headlines today’s docket and Procter & Gamble pre-market are the highlight of today’s earnings.
  • 2YY -4.2bp at 4.101%, 5YY -3.0bp at 3.597%, 10YY -1.3bp at 3.519%, 30YY -0.6bp at 3.734%.
  • TYM3 trades 6 ticks higher at 114-27 on subdued volumes of 220k. It’s has just dipped off a high of 114-27+, eyeing resistance at the 20-day EMA at 114-29 after which lies 115-23 (Apr 14 high).
  • Data: S&P Global US PMI Apr prelim (0945ET)
  • Fedspeak: Gov Cook (1630ET, text/Q&A). Policy blackout starts midnight.

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