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Slightly Richer On The Day (Mostly) Pre-Powell, 3Y Supply

US TSYS
  • Cash Tsys see some cheapening pressure heading to the NY crossover but mostly hold richer on the day in only a partial reversal of yesterday’s continued post-payrolls sell-off.
  • 2YY -2.9bps at 4.443%, 5YY -2.1bps at 3.807%, 10YY -0.2bps at 3.638% and 30YY +0.8bps at 3.682%.
  • TYH3 trades just half a tick lower at 113-15+ off yesterday’s late low of 113-10+ on average volumes. It has cleared prior support at 113-17+ (61.8 retrace of Dec 30 – Jan 19 bull run) to open 112-29 (76.4% retrace of same move).
  • Fedspeak: Chair Powell clearly in focus with remarks expected 1240ET, plus also VC Supervision Barr on financial inclusion (1400ET).
  • Data: Trade balance Dec (0830ET), Consumer credit Dec (1500ET)
  • Bond issuance: US Tsy $40B 3Y Note auction (91282CGL9) – 1300ET

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