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Cash Bonds Open Slightly Richer After Yesterday’s Bull Steepening

US TSYS

TYH4 is trading at 111-15, +0-05+ from NY closing levels.

  • Cash bonds have opened today’s Asia-Pac session ~1bp richer.
  • US Treasury Secretary Yellen said she sees 'NO REASON' for a recession this year: ABC
  • This comes after US tsy yields finished the NY session 4-9bps lower after Q4 GDP printed 3.3% annualised growth, well above the consensus of 2.0%. Core PCE Price Index showed 2.0%, in line with consensus and prior. Initial Jobless Claims increased by 25k last week to 214k, suggesting that the previous week’s low was exaggerated by seasonal effects.
  • Later today the US calendar shows Personal Income & Spending, PCE Deflator for December, Pending Home Sales and Dallas Fed Manf. Activity data.

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