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Treasuries Bear Steepen Ahead Of Payrolls

US TSYS
  • Bear steepening in cash Tsys, with yields swinging their way to currently sit 4-6bps higher ahead of payrolls whilst larger hike are re-priced in. Russia’s Lavrov has said that there is movement forward in talks with Ukraine but it has largely been faded.
  • 2YY +4.1bps at 2.375%, 5YY +4.8bps at 2.508%, 10YY +5.9bps at 2.397%, 30YY +5.8bps at 2.505%.
  • TYM2 is down 19 ticks at 122-09 on marginally above average volumes as it continues a week of large moves with a range from 120-30+ (the bear trigger) to 123-04 (initial resistance higher at 123-12).
  • Fedspeak: Chicago Fed’s Evans (2023 voter) speaks on the economy and monetary policy at 0905ET.
  • Data: Payrolls is the clear main event at 0830ET (cons 490k after 678k, u/e rate down a tenth to 3.7%, AHE bouncing to +0.1% M/M) but also followed by the March manufacturing PMI (final) and ISM surveys (new) at 0945 and 1000 respectively.

Source: Bloomberg

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