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Marginal UST Curve Flattening; Focus Tomorrow Shifts To Payrolls

US TSYS SUMMARY

The UST curve has flattened slightly on the day as a result of the short end trading a touch weaker and long-end yields inching lower. Following a brief rally around the time of the initial claims data, USTs are now back to the middle of the day's range.

  • Last yields: 2-year 0.2527%, 5-year 0.8926%. 10-year 1.4663%, 30-year 2.0728%
  • TYU1 trades at 132-10+, having sat inside a relatively tight range during the day (L: 132-06 / H: 132-15).
  • Initial jobless claims came in at 364k vs 388k consensus, while the ISM manufacturing print was a touch below expectations at 60.6 vs 60.9 while pointing to still solid expansion.
  • Focus tomorrow shifts to payrolls with consensus looking for a print of 716k.

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