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Bull Steeper With FOMC Minutes & Late Fedspeak In Focus

US TSYS
  • Cash Tsys have bull steepened after yesterday’s Independence Day closure, albeit with some gyrations with a strong open, intraday cheapening early in the European hours and subsequent paring on softer European data. Accordingly, the modest rally in 10s underperforms core EU FI.
  • The FOMC minutes (preview here) headline the session with typical Wednesday data releases ahead of payrolls shunted to tomorrow in the holiday-shortened week.
  • 2YY -4.6bp at 4.890%, 5YY -3.2bp at 4.156%, 10YY -1.6bp at 3.839%, 30YY +0.0bp at 3.863%
  • TYU3 trades 3+ ticks richer at 112-01+ on soft but in line with recent average volumes of 230k. The trend needle pointing south with support at 111-25+ (both yesterday and Jun 30 low) after which lies 111-14+ (Mar 9 low) and the key 110-27+ (Mar 2 low). Resistance meanwhile sits at 112-21 (Jun 22 low).
  • Fed: FOMC minutes (1400ET), NY Fed’s Williams with no text (1600ET)
  • Data: Factory orders/final durable goods May (1000ET)
  • Bills issuance: US Tsy 17W bill auction (1130ET)

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