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Risk-Off With Supply Set To Headline The Session Ahead Of US CPI, FOMC

US TSYS
  • Cash Tsys trade richer amidst a risk-off environment, led by the long-end although with yields remaining higher than pre-US PPI levels across the curve (the 10Y a case in point having been sub-3.50% pre PPI). A very light docket today sees supply headline the session, including 3Y and 10Y notes – note the staggered times below - with focus on US CPI tomorrow and the FOMC decision Wed.
  • 2YY -2.7bps at 4.317%, 5YY -5.4bps at 3.715%, 10YY -5.9bps at 3.520%, 30YY -6.0bps at 3.499%. 2s10s at -79.5bp sit 3-4bps off last week’s fresh multi-decade lows.
  • TYH3 trades 9+ ticks higher at session highs of 114-12+, back in the middle of Friday’s range. Resistance remains the bull trigger at 115-06+ (Dec 7 high) whilst support is seen at 113-21+ (Dec 2 low).
  • Data: Monthly budget statement for Nov (1400ET)
  • Bond issuance: US Tsy $40B 3Y Note (91282CGA3) at 1130ET, US Tsy $32B 10Y Note re-open (912796X53) at 1300ET
  • Bill issuance: US Tsy $45B 26W bills at 1130ET, $45B 13W bills at 1300ET

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