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Holding Pattern

US TSYS SUMMARY

Treasuries have ticked higher with some modest flattening in the curve, as equities bounce a bit from Tuesday's rout and the dollar continues to strengthen.

Front TYs in a bit of a holding pattern in this session, on OK volumes (~250k traded) Dec 10-Yr futures (TY) up 0.5/32 at 139-13 (L: 139-11.5 / H: 139-20). Our tech analyst sees the current range on TYs as 139-00 to 139-29.

The 2-Yr yield is up 0.2bps at 0.1429%, 5-Yr is up 0.5bps at 0.2722%, 10-Yr is down 0.2bps at 0.6771%, and 30-Yr is down 0.2bps at 1.4193%.

Apart from a modest core FI bid, the market has largely shrugged off news of a delay in Oxford COVID vaccine trials. Could be some attention on Republican COVID fiscal bill, Fox's Chad Pergram reporting that there will be "offstage conversations" in the Senate today with an eye on a procedural vote later this week.

Precious little on the calendar today. Only data is July JOLTS at 1000ET; only supply is $35B 10Y-Note re-open auction at 1300ET. NY Fed buys ~$2.425B of TIPS.

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