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Minor Twist Steepening With JOLTS & ISM Mfg Ahead

US TSYS
  • Cash Tsys trade within overnight narrow ranges for a marginal twist steepening. The front end has been paring gains but remains very slightly bid, seemingly on a softer China Caixin PMI before no notable impact on near-term meeting expectations from the RBA holding, and the long end weighed by EU FI.
  • 2YY -0.4bp at 4.872%, 5YY +0.7bp at 4.184%, 10YY +1.0bp at 3.969% and 30YY +1.0bp at 4.020%.
  • TYU3 trades 2+ ticks lower at 111-10+, near yesterday’s close after some late selling pressure from Treasury indicated larger Q3 issuance plans than some expected. Volumes are subdued though at just over 225k. Support at Friday’s 1110-25+ remains intact with a resumption of weakness potentially exposing a key 110-05 (Jul 6 low).
  • Data: US mfg PMI Jul final (0945ET), JOLTS Jun (1000ET), ISM mfg Jul (1000ET), Construction spending Jun (1000ET), Dallas Fed services Jul (1030ET)
  • Fedspeak: Goolsbee welcoming remarks (1000ET)
  • Bill issuance: US Tsy $50B 42D CMB auction (1130ET)

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