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Steady Tsy Quarterly Refunding Annc React

US TSY FUTURES
  • Fast two-way again, Tsy futures extend highs (TYH4 112-03.5 +15) after the Tsy Quarterly Refunding announced no supply increases for several quarter. Meanwhile, Employment Cost Index comes out at 0.9% vs. 1.0% est.
  • Futures retrace half the move on decent two-way volumes, trades 111-29.5 last -- after flirting with Initial technical resistance above at 112-02/112-26+ (Intraday high / High Jan 12). 10Y yield 4.0051% (-.0268). Curves steeper: 2s10s +1.654 at -28.813.
  • Next up: MNI Chicago PMI at 0945ET followed by FOMC rate annc at 1400ET and press conference 30 minutes later.

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