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Firmer Rates Inside Fri's Range

US TSYS
Tsy futures kicking off new week firmer, still inside Friday's range (after last Wed's tumble), yield curves mixed w/5s and 10s vs 30s running steeper. Modest volumes (TYZ1 122k). Equities firmer (ESZ1 +10.75), Gold and Crude weaker.
  • Limited data: Empire Mfg (22.0 est vs. 19.8 prior), more focus on Tue: Retail Sales (1.3% MoM est vs. 0.7% prior), Import/Export prices, Industrial Production/Cap-U, Business Inventories and Net TIC Flows.
  • NY Fed buy-operation: Tsy 0Y-2.25Y, appr $10.875B and total $108B Tsy 13W and 26W bill auctions on tap Monday.
  • Overnight trade: Pick-up in corporate issuance spurring rate locks, option-tied flow, two-way from fast$ and prop accts in 2s-5s.
  • Currently, the 2-Yr yield is down 0.4bps at 0.5076%, 5-Yr is down 1bps at 1.2113%, 10-Yr is down 1bps at 1.5511%, and 30-Yr is up 0.1bps at 1.9322%.

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