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Modestly Richer After Lunar New Year Thinned Volumes

US TSYS
  • Cash Tsys trade 1.5-2bp richer, pushing back towards the middle of Friday’s wide range seen around CPI revisions-induced volatility. With US CPI in the spotlight tomorrow, Treasuries underperform EGBs/Gilts, where the larger rally appears have few macro catalysts.
  • TYH4 at 110-24+ trades 6+ ticks higher, well within Friday’s range, with volumes are just 230k after Lunar New Year proceedings curtailed volumes overnight. A bear threat remains present, with support at 1110-16 (Dec 13 & Feb 9 low) after which lies 109-31+ (Dec 11 low).
  • Data: NY Fed Inflation Expectations Jan (1100ET), Mthly budget statement Jan (1400ET)
  • Fedspeak: Bowman (0920ET), Barkin (1200ET), Kashkari (1300ET) – see STIR bullet for details.
  • Bill issuance: US Tsy $79B 13W, $70B 26W bill auctions (1130ET)

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