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Curve Steeper Post-FOMC

US TSYS

Treasuries continued to gain overnight from Wednesday's FOMC decision lows, with the curve a little steeper amid belly outperformance.

  • The 2-Yr yield is down 2.6bps at 0.637%, 5-Yr is down 3.9bps at 1.206%, 10-Yr is down 2.2bps at 1.4343%, and 30-Yr is down 1.2bps at 1.8484%.
  • That's no reflection of the tone of risk appetite, with S&P futures touching all-time highs. Weak European PMIs haven't seemed to dampen the mood, with core global FI yields continuing lower.
  • A busy schedule today, with attention first of all on the Bank of England and ECB decisions. Plenty of data too: jobless claims and housing starts along with Philly Fed, all at 0830ET; industrial production at 0915ET; PMIs at 0945ET.
  • In supply: $55B combined in 4-/8-week bill auctions at 1130ET. NY Fed buys ~$1.625B of 10-22.5Y Tsys, and $1.525B of 1-7.5Y TIPS.

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