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Modestly Richer With 10Y Supply And Williams In Focus

US TSYS
  • Cash Tsys trade circa 2bp richer, outperforming European FI at the front end but with little by way of headline drivers at work.
  • TYH4 at 112-02+ is off a high of 112-07 seen after rounds of screen lifts which cleared yesterday’s high, but it's remained below month-to-date best levels which mark resistance at 112-19 (Jan 4 high) after which sits the bull trigger at 113-12 (Dec 27 high).
  • 10Y supply headlines the docket after yesterday’s well-received 3Y issuance before attention turns to NY Fed’s Williams (permanent voter) speaking for the first time since pushing back on March rate cut expectations shortly after the December FOMC decision. US CPI tomorrow lurks on the horizon.
  • Fedspeak: NY Fed Williams (voter) at 1515ET incl text
  • Data: Weekly MBA mortgage data Jan 5 (0700ET), Wholesale sales/inventories Nov/Nov final (1000ET)
  • Note/bond issuance: US Tsy $37B 10Y Note re-open auction (1300ET)
  • Bill issuance: US Tsy $56B 17W Bill auction (1130ET)

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