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Treasuries Bull Flatten, US CPI Ahead

US TSYS
  • Cash Tsys have on balance rallied 1-2.5bps after mixed Russia-Ukraine headlines saw a partial unwind of an earlier rally through the early London session, which had possibly followed overnight US comments on the potential for Russia to use chemical / biological weapons.
  • 2YY -1.0bps at 1.670%, 5YY -1.3bps at 1.865%, 10YY -2.1bps at 1.932% and 30YY -2.4bps at 2.311%. The 2s10s section of the curve is off lows but remains extremely flat at 26bps.
  • TYM2 sits 3+ ticks higher at 126-21 on below average volumes. It holds above yesterday’s low of 126-16+, after which it could open 1260-10 (76.4% retracement of the Feb10-Mar7 rally) whilst resistance remains Tuesday’s high of 128-04.
  • Data: US CPI for Feb (0830ET) and monthly budget statement for Feb (1400ET)
  • Bill issuance: US Tsy $45B 4W, $35B 8W bill auctions (1130ET)
  • Bond issuance: US Tsy $20B 30Y Bond auction re-open (1300ET)

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