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Market Roundup: Yields Climbing Post Data, ISMs on Tap

US TSYS

New quarter underway with FI markets extending post-data lows, bonds through early Wednesday lows (USM2 147-29, -2-05), 30YY taps 2.5416 high.

  • Heavy two-way trade post-data, short end back to pricing in more aggressive/multiple 50bp rate hikes for year (216bp by year end vs. 220bp on Monday). ISMs and Construction Spending data coming up at 1000ET.
  • Broad-based inversions vs. 10s: yield curves bear flattened -- 2s10s slipped to -2.610 low is holding around steady now, 5s10s slips to -14.958 low, currently at -13.422.
  • TYM2 currently at 121-27.5 (-1-00.5), eying key resistance of 120-30+ Low Mar 28 and the bear trigger where a break would confirm a continuation of the downtrend and would open the 120-00 handle.
  • Decent jobs data (431k vs. 490k est but Fed up-revision of 95k and unemployment rate drop to 3.6%) underpinned stocks with some recent selling pushing SPX eminis to around 4528.0 (-2.75).
  • Current cross asset: West Texas Crude (WTI) well off pre-open lows of 97.85 at $100.15; Gold -5.10 at $1932.34.

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