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Treasuries Reverse Asia Bid To Twist Flatten

US TSYS
  • Cash Tsys see a tale of two regional sessions, bid in Asia-Pac dealing with reports of pockets of COVID-related social unrest across some of the major Chinese cities and a continued uptick in new daily COVID cases in China before cheapening in European hours, helped by some hawkish comments from ECB's Knot.
  • 2YY +2.1bps at 4.473%, 5YY +2.1bps at 3.879%, 10YY +1.3bps at 3.69%, and 30YY -0.5bps at 3.728%. The twist flattening leaves 2s10s of -78bps close to recent multi-decade lows.
  • TYZ2 trades 2 ticks higher at 113-03 on slightly above average volumes, maintaining a bullish outlook with resistance seen at the intraday high of 113-17 and support at the 50-day EMA of 112-14. There has now been more than 80% roll into March for TYA ahead of first notice on Wed.
  • Fedspeak: Williams (1200ET), Bullard (1200ET)
  • Data: Limited to Dallas Fed mfg index after mixed November readings for other Regional Fed surveys.
  • Bill issuance: $54B 13-Week, $45B 26-Week Bills (1130ET)

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