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Holding Sizeable Rally On JOLTS and Regional Bank Woes

US TSYS
  • Treasuries are struggling to pare earlier gains with the S&P E-mini also only slightly off lows as regional banks remain under pressure despite PacWest trimming earlier losses from -40% to -23% (with the declines following on from JPM's prior takeover of First Republic Bank with its implications for potential rescue deals further in the future).
  • Combined with the softer 1000ET data, 2YY are still -19bps on the day and 10YY -14bps, whilst TYM3 trades +1-03 at 115-19 close to earlier highs of 115-21 with next resistance seen at 115-30+ (Apr 26 high).

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