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Market Roundup: Improved Sentiment, Yield Curves Bull Flattening

US TSYS

Tsys have whipsawed higher Thursday, partially driven by same factors pushing equities back to early Tuesday levels: improved market sentiment over COVID curbs on China travel as testing has not revealed new variants while "European health officials called screenings and restrictions on travelers from China unjustified" Bbg.

  • Knee-jerk post-data (weekly claims in-line at 225k, continuing claims higher than est at 1.710M) 30Y Bond sale quickly reversed, 30YY falling back to 3.9479% from 3.9773% post-data high. Futures see-sawed higher as risk sentiment for stocks improved.
  • Note, yield curves reversing much of Wed's moves, 2s10s currently -5.867 at -53.336.
  • With data out of the way, rates to absorb week's final Tsy supply: $35B 7Y Note auction (91282CGB1) at 1300ET.

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