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Closed Firmer On Geopolitical Risk

US TSY FUTURES
  • TYH2 closed up 6+ ticks on the day at 126-28, having drifted higher over the last 40mins of trading on headlines that Putin will address the nation “soon” with plans for recognition of separatist states, raising risks of further escalation as sanctions are likely imposed.
  • It earlier touched new session highs of 126-31+, briefly clearing the 20-day EMA of 126-30+ and leaving it just shy of 127-01 (Feb 7 high) after which it could open 127-24 (Feb 4 high).
  • Volumes were unsurprisingly low with the US out on Presidents’ Day.
  • Tomorrow: Fed's Bostic (non-voter) plus various house price indices, Markit preliminary PMIs for Feb and Conference Board consumer confidence.
  • NY Fed buy-op on tap plus issuance for 13W, 26W & 52W bills and 2Y notes.

TYH2 - 10Y Note (CBT) Mar22Source: Bloomberg

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