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Modest Belly-Led Rally Ahead Of 6xFedspeak

US TSYS
  • Cash Tsys sit little changed at the front-end after yesterday’s surge but continue to rally further along the curve, albeit at a slower pace than yesterday.
  • 2YY +0.2bps at 2.596%, 5YY -2bps at 2.928%, 10YY -1.5bps at 3.018% and 30YY -0.7bps at 3.143%.
  • TYM2 trades 14+ ticks higher at 118-20+ on above average volumes. It clears yesterday’s high but initial resistance remains the 20-day EMA at 119-13, whilst support is yesterday’s cycle low of 117-08+.
  • The only data of note today have already been released, with the NFIB survey showing the highest share of small businesses saying inflation was their single most important problem since 1981 at 32%.
  • Drivers are more likely headlines from six different Fed speakers from across the dove-hawk spectrum ahead of tomorrow’s CPI for April.

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