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Front Tsys Back Near Pre Chicago PMI Levels

US TSYS
  • Volatility continues in cash Tsys are they move back near pre-Chicago PMI levels for the front end and belly, having surged on the PMI miss before swinging lower on the JOLTS beat.
  • In yield space, 2YY are -4.1bps and 10YY -2.5bps, for only a modest steepening on the day with 2s10s -74.5bps (+1.5bp).
  • TYU3 trades 8+ ticks higher at 114-09+ in the middle of the post-data range of 114-02 to 114-15, having poked above earlier session highs to open resistance at the 20-day EMA of 114-29+ after yesterday’s bullish engulfing candle.
  • Near-term FOMC implied rates: June OIS pricing back to +16bp (+14bp pre JOLTS) and July +25bp (+21bp).

2Y Tsy yield

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