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Short-Lived Modest Paring Of Post-Data Gains

  • Treasuries have seen a short-lived partial paring of post-data gains, more so at the wings with 5Y through 10Y tenors marginally slower after the strong 7Y auction earlier stopped through by 2bps.
  • It still sees large rallies on the day though, with 2YY -11bps and 10YY -8bps, the latter driven in real terms after surprisingly low job openings, quits rate back at pre-pandemic averages and softer than expected consumer confidence including important labor market indicators.
  • TYZ3 volumes have overtaken those of TYU3, with the contract trading 22 ticks higher at 110-26+, off earlier highs of 110-29+ but maintaining clearance of the 20-day EMA at 110-20.
  • The Fed’s VC for Supervision Barr is still to come on Banking Services at 1500ET but there is otherwise a dearth of scheduled Fedspeak post-Jackson Hole, with Bostic up next on Thu.
  • ADP is likely in additional focus tomorrow after today’s soft JOLTS report, along with the second reading of Q2 GDP considering Q3 trackers are willing wild in the case of the Atlanta Fed tracker.

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