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Holding Modest Gains Ahead Jan FOMC Minutes

US TSYS
  • Cash Tsys modestly firmer, off recent highs but holding above last Friday's pre-PPI levels. Little follow through from softer core/semi-core EGBs as European market awaits flash February consumer confidence data later this morning (1000ET).
  • TYH4 currently +2.5 at 110-00.5 vs. 110-02.5 high. Nearing initial technical resistance at 110-17.5 (Feb 15 high), support below at 109-17/15 (50.0% of Oct 19 - Dec 27 climb / Low Feb 16). Curves mildly steeper: 2s10s +.509 at -33.391, 10Y yield at 4.2616 -.0137.
  • Limited data today MBA Mortgage Applications up at 0700ET.
  • Main focus on Jan 31 FOMC minutes release at 1400ET.
  • A few Fed speakers on today's docket - unlikely to be market moving ahead the FOMC Minutes release: Atl Fed Bostic opening remarks airline CFO summit (no text or Q&A) kicks of at 0800ET, with a recorded interview of Richmond Fed Barkin on SiriusXM Monday airing at 0910ET. Meanwhile, Boston Fed Collins fireside chat (no text, Q&A) later this evening at 0730ET.
  • US Treasury auction supply: $28B 2Y FRN R/O note (91282CJU6) and 17W bill auctions at 1130ET followed by $16B 20Y Bond (912810TZ1) auction at 1300ET.

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