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Off Lows But Within Narrow Ranges, PPI In Focus

US TSYS
  • Treasuries have lifted off session lows with help from Home Depot earnings and some dovish components to the NFIB small business survey.
  • They remain within relatively narrow intraday ranges though, broadly consolidating yesterday’s geopolitical risk driven rally.
  • Cash yields currently sit 0.3bp lower (2s) to 0.7bp higher (30s).
  • 2s10s at -10.4bps (+0.6bp) continues to hover a little below recent highs having briefly disinverted the Monday after payrolls for the first time since mid-2022.
  • TYU4 is little changed on the day at 113-06+ on particularly tepid volumes of 210k. Support is seen at 112-03 (20-day EMA) but declines are deemed corrective with resistance at 114-03 (Aug 6 high).
  • Data: PPI inflation Jul (0830ET)
  • Fedspeak: Bostic on economic outlook (1315ET, no text) – see STIR bullet
  • Bill issuance: US Tsy $75B 42D Bill CMB auction (1130ET)

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