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Treasuries Jump With BoE Purchases, Fedspeak and Issuance Ahead

US TSYS
  • What started off as a twist steepening for cash Tsys with 10Y yields clearing 4% has swung to an outright bull flattening in spillover from the BoE announcing bond purchases to restore stability.
  • 2YY -9.9bps at 4.184%, 5YY -8.7bps at 4.097%, 10YY -5.3bps at 3.892%, and 30YY -2.2bps at 3.804%.
  • TYZ2 trades 19 ticks higher at 111-15+ (snap high of 111-18) with a spike in volumes but keeps to yesterday’s wide range with its high of 112-01+. Prior to the BoE announcement it saw a new recent low of 110-19.
  • Fedspeak: Daly, Bostic, Bullard, Powell, Bowman, Barkin all scheduled although some including Powell just opening remarks.
  • Data: Second tier with preliminary wholesale inventories, advanced trade balance, pending home sales (of more note than usual after yesterday’s new home sale surge) and weekly MBA mortgage applications/rate.
  • Bond issuance: $22B 2Y FRN Note auctions (91282CFD8) at 1130ET, $36B 7Y Note auction (91282CFL0) at 1300ET after tails for 2Y and 5Y auctions in the past two days.
  • Bill issuance: $30B 119D CMB

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