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T-Notes consolidate their late NY uptick....>

US TSYS
US TSYS: T-Notes consolidate their late NY uptick away from lows, to last deal
+0-05+ at 138-26+, after U.S. President Trump pointed to an announcement re:
China on Friday. A reminder that TYU0 is now the front month.
- On the data front, durable goods wasn't as weak as exp., while continuing
jobless claims data also provided a "beat" vs. exp. (although some pointed to
the degree of the fall in continuing claims being largely driven by statistical
quirks re: state reporting).
- Those data releases facilitated curve steepening in early US trade, before a
pullback from steeps, aided by the aforementioned risk-off move. Nonetheless,
the 5-/30-Year yield spread closed above 110bp for the first time since '17,
although the intraday wides of 2020 still haven't been tested, yet.
- The latest 7-Year auction was quite similar to Wednesday's 5-Year offering,
generating a 0.9bp tail, with a nudge higher for dealer takedown.
- A reminder that month-end extensions are seen as above average, although that
hasn't stopped the curve from steepening this week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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