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Cash Bonds Dealing Little Changed, Markets Await US CPI

US TSYS

TYH4 is trading at 111-28+, 0-00+ from NY closing levels.

  • With little in the way of meaningful newsflow, cash US tsys are dealing little changed in today’s Asia-Pac session ahead of the US CPI data release later today.
  • Consensus puts core CPI inflation at 0.3% m/m in December, with risk seen to the downside. If analysts are correct, supercore trend rates are likely to remain very strong at 4% annualised handles but treat with some caution as differences in methodology have seen core PCE at notably weaker rates in recent months. (see MNI’s US CPI Preview here)

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