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Treasuries have steadied............>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries have steadied following Wednesday's FOMC volatility,
but the curve remains flatter amid concerns the Fed is making a policy mistake.
- The Mar 19 T-Note future is down 1.5/32 at 121-04, middle of day's range.
- The 2-Yr yield is up 1.4bps at 2.6602%, 5-Yr is up 2bps at 2.639%, 10-Yr is up
1.4bps at 2.769%, and 30-Yr is down 0.5bps at 2.9754%.
- Key technical levels are being tested; 10-yr yields breached long-term up
trendline support to 2.7459, lowest level since April.
- 2s10s spread remains around cycle lows, 2s30s already there (touched 30.4bps).
- Most post-mortem FOMC dealer research seen by MNI emphasised potential for
further flattening; biggest single surprise in appears to have been the drop in
the long-term median dot to 2.75% from 3.00% (some had said could go to 2.875%).
- Also "further gradual increases" not amended as dovishly as expected.
- Equities bouncing (S&P e-mini flat after earlier dropping 1% Thursday) but
still down more than 5% over the past week. Dollar sharply weaker.
- Initial jobless claims and Philly Fed the early data highlights.

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