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Consolidating Yesterday’s Second Half Sell-Off

US TSYS
  • Cash Tsys sit slightly softer on the day in a broad consolidation of yesterday’s second half sell-off with the rebound in equities as Western sanctions were seen as more moderate.
  • 2YY +0.4bp at 1.584%, 5YY +0.7bp at 1.868%, 10YY +0.2bp at 1.965% and 30YY -0.1bp at 2.277%. The front end remains only 5bps off post pandemic highs of 1.6358 on the spike after US CPI two weeks ago.
  • TYH2 sits 2 ticks lower on the day at 126-13 at the very low end of yesterday’s range. June becomes the lead quarter for TYA on Monday.
  • Data: The focus is on the important January releases for core PCE deflator and incomes/spending at the same time as durable goods (0830ET), plus finalised consumer inflation expectations from the U.Mich survey.
  • NY Fed buy-op: Tsy 0Y-22.5Y, appr $6.225B (1030ET – carried over from yday).
  • No issuance.

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