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Gains Slowly Paired On Beats For Home Sales & Consumer Confidence

US TSYS
  • Initial reaction to beats for US existing home sales and Conf. Board consumer confidence was muted, but Treasuries have since pared earlier gains.
  • Major tenors now sit 1.5-4.5bp richer vs 3-6bp pre-data, with the day’s rally still led by 2s.
  • Fed Funds implied rates have correspondingly nudged 1-2bps higher but still show 21bp of cumulative cuts for the March FOMC and 149bp for 2024.
  • TYH4 at 112-18 has pulled back into recent ranges. It’s off a high of 112-25+ from earlier in the US session, which stopped short of testing resistance at 112-28+ (Fibo projection point).

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