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Treasuries See New Flats On Shopify Woes

US TSYS
  • Tsys extend to new richest levels on further consumer weakness, this time in the guise of Shopify laying off 10% of staff as the boom in pandemic e-commerce has cooled faster that expected. Little reaction before that to the Philly Fed non-manufacturing index falling from 4.6 to 0.1 on a larger decline in new orders.
  • TYU2 touches new session highs of 120-10+ (+0-21+ on the day) in the day’s resumption of the bullish focus, testing resistance eyed at 120-11 (Jul 22 high) and the bull trigger of 120-16+ (Jul 6 high) just above it. Volumes continue to lag from a subdued European session.
  • In cash space, inversion continues to build with 2s10s falling 3.7bps to -25bps and the 3M to 10Y spread hitting new flats of 17bps.

Source: Bloomberg

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