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Market Roundup, Tsys Off Highs on Pending Home Sales Surge

US TSYS

Tsys scaled back from recent session highs following Pending Home Sales read for Jan at 82.5 up from 76.3 in Dec, +8.1 MoM well over 1.0% estimate. Futures reluctant to recede very far from session highs, however, 30YY 3.9097% (-.0194).

  • US Tsys had extended session highs pre-sales, curves flatter (2s10s -.723a t -88.377) with short end lagging this morning's post Durables/Cap-Goods rally. Some technical buying in the mix as rates move off contract lows (TUH3 101-17.75 vs. 101-22.38 last).
  • STIR: Fed funds implied hike for Mar'23 at 29.1bp (-1.0), May'23 cumulative 55.6bp (-1.6) to 5.138%, Jun'23 72.3bp (-3.0) to 5.305%, terminal at 5.39-5.395 in Aug'23-Oct'23 (5.41-5.415% prior).
  • Stocks, however, continue to inch higher, SPX eminis back near late Thursday levels, Consumer Discretionary sector outperforming w/ autos leading rally.

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