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Consolidating Recent Sell-Off With Focus On FOMC Decision

US TSYS
  • Cash Tsys trade in relatively narrow ranges, with the 9bp range for 2YY small compared to recent days, as they consolidate the cheapening of the past two sessions after smaller regional banks are seen as increasingly likely to have extended deposit guarantees if needed. The focus shifts to today’s FOMC decision with a 21bp hike priced and a clear majority of analysts looking for 25bp.
  • 2YY -0.3bp at 4.164%, 5YY -2.1bp at 3.727%, 10YY -1.3bp at 3.596% and 30YY +0.0 at 3.732%
  • TYM3 trades 2 ticks higher at 114-06, slightly off yesterday’s low of 114-02 and support at 114-01+ (Mar 17 low) after which lies the 50-day EMA of 113-13. Volumes are more subdued at 250k.
  • FOMC: Decision (1400ET) before Chair Powell press conference (1430ET)
  • Data: Only weekly MBA mortgage data (0700ET)
  • Bill issuance: US Tsy $36B 17W bill auction (1130ET)

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