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Good Is Bad Again?

US TSYS
Rates trading off session highs to appr the middle of Tue's range in USH1. TYH1s currently 135-29.5 (+4.5) are just below initial resistance at 136-01, Jan 12 low -- trend remains down. Fairly sedate midday trade after the post data bounce as markets await FOMC minutes.
  • Incidentally, after trading lower on better than expected data (aside from revisions, and taking yesterday's move into account) it appears sentiment is back to "good data is bad" as it lowers probability of $1.X trillion fiscal stimulus on the margins.
  • Coming up: Tsy $27B 20Y bond auction at 1300ET (last moth's re-open tailed 1.2bp: high yield of 1.657% vs. 1.645% WI, on a bid/cover 2.28%)

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