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Treasuries Rally On Manchin's No To BBB

US TSYS
  • Cash Tsys have bull steepened this morning from a combination of Manchin saying yesterday that he cannot support BBB and renewed Omicron restriction fears.
  • 2Y yields are -2.8bps at 0.609%, 5Y -3.1bps at 1.144%, 10Y -1.5bps at 1.387% and 30Y -0.3bps at 1.803%.
  • TYH2 futures have sold off in recent trading but are still +0-07 on the day at 131-12 on above average seasonal volumes. The brief session high of 131-19 cleared the Dec 3 high of 131-16, whilst a further clear break would reinstate a bullish outlook opening the 132-00 handle.
  • No Fedspeak today and data limited to the Conference Board leading index for Nov at 1000ET.
  • NY Fed buy-op: Tsy 4.5Y-7Y, appr $4.525B vs. $5.275B prior (1030ET).
  • Issuance limited to bills today: $60B 13W and $51B 26W (1130ET), $60B 78D (1300ET).

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