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Treasuries Flatten Further Post-FOMC

  • Cash Tsys have seen a sizeable bull flattening today after yesterday’s post-FOMC bear flattening. Most recent comments from the Kremlin that reports of major progress in Ukraine talks were wrong only accounted for about a 1.5bp dip in 10YY before largely reversing the move.
  • The continued flattening sees 2s10s touch 20bps (lowest since Feb/Mar-2020) whilst 5s10s continue to sit around 0bps, last seen for a prolonged period of time in 2006-07.
  • 2YY -2.2bps at 1.916%, 5YY -6bps at 2.120%, 10YY -6.2bps at 2.123%, 30YY -8.1bps at 2.372%.
  • TYM2 sits 16+ ticks higher on the day at 124-24 on slightly above average volumes. Yesterday’s low of 123-25+ likely becomes new support whilst resistance remains at 126-13+ (Mar 11 high).
  • Data: A solid day for second tier releases with jobless claims, housing starts/building permits (0830ET), Philly Fed (0830ET) and IP & cap util (0915ET).
  • Bill issuance: US Tsy $45B 4W, $35B 8W bill auctions (1130ET).

Source: Bloomberg

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