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Modest Twist Steepening, Fedspeak & Data Ahead

US TSYS
  • Cash Tsys sit with a modest twist steepening after two-way moves as some stronger German regional inflation data suggested some upside risk to consensus for the national print and helped pare earlier gains.
  • Fedspeak and data in focus from the docket. Impact from GDP revisions could be limited by being the 3rd release (although surprises certainly can’t be ruled out), whilst weekly initial claims are likely watched for any sign of regional banking woes having any early impact.
  • 2YY -2.1bp at 4.078%, 5YY -0.9bp at 3.673%, 10YY +0.0bp at 3.564% and 30YY +0.4bp at 3.763%.
  • TYM3 trades just half a tick lower at 114-16+ and remains within yesterday’s range of 114-07-114-28. It doesn’t trouble technical levels with support at the 20-day EMA of 114-06 or resistance at 115-07+ (Mar 28 high).
  • Data: GDP for Q4 3rd release (0830ET) plus weekly jobless claims (0830ET)
  • Fedspeak: Barkin (1245ET, text), Collins (1245ET, text) and Kashkari (1300ET).
  • Bill issuance: US Tsy $60B 4W, $50B 8W bill auctions (1130ET)

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