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Treasuries Further Pare Gains Pre-FOMC Minutes

US TSYS
  • Tsys see a further paring of earlier gains on the weak PMIs, that had started with stronger data at 1000ET and appears most recently to have moved in lockstep with equities softening.
  • It’s potentially on headlines that Ukraine will request an urgent meeting of the UN Security Council to discuss latest Russian strikes, but also comes ahead of the FOMC minutes at 1400ET/Thanksgiving tomorrow.
  • In yield space, 2YY now more than 2bps off lows at 4.49% (-2.5bps), with similar move on the day for 10YY (-2.4bps), leaving 2s10s little changed at -76bps having fluctuated lower earlier on stronger data before re-steepening.
  • TYZ2 trades at 112-24, off a session high of 113-00+. The technical outlook remains bullish, with resistance seen at 113-11 (Nov 16 high) whilst support is seen at 111-25 (20-day EMA).

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