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

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.