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Treasuries Consolidate Yesterday's Rally

US TSYS
  • Cash Tsys have seen a small bear flattening this morning after yesterday’s rally. The shorter-end is up 1bp on the day but yields remain lower than immediately before Wed’s FOMC (2Y -4bps, 5Y -7.5bps) as markets have priced in lower odds of hiking further out.
  • 2Y yields are +1.1ps at 0.623%, 5Y +1.1bps at 1.175%, 10Y +0.5bps at 1.416% and 30Y -0.5bps at 1.847%.
  • TYH2 futures have consolidated yesterday’s rally to weekly highs, unchanged at 131-03 on higher-than-average volumes. Clearing 131-16 would reinstate a bullish outlook.
  • Fedspeak: Williams (NY Fed) on CNBC Squawk Box interview 0830ET followed by Waller (Board member) on the economic outlook with text and Q&A at 1300ET.
  • No data today.
  • NY Fed buy-op: Tsy 22.5Y-30Y, appr $1.825B vs. $1.600B prior (1030ET).

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