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Treasuries Slightly Sold Ahead Of Payrolls

US TSYS
  • Cash Tsys are slightly sold this morning ahead of payrolls, having sold off materially over the past two days following the FOMC minutes.
  • 2Y yields are +0.4bps at 0.870% (just off intraday fresh post-pandemic highs), 5Y +0.4bps at 1.472%, 10Y +0.2bps at 1.723% and 30Y +0.5bps at 2.081%.
  • TYH2 sees a mild start to the day, up 3 ticks at 128-20 in the middle of most of yesterday’s range. Support is seen at 128-08 (=1.78% yields), 128-05 (1.618 proj of the Dec 20-29-31 price swing) and the psychological 128-00. Resistance is seen at 129-19 (Jan 4 high).
  • Fedspeak: Daly (non-voter) at 1000ET is unlikely market moving after speaking yesterday (takes high inflation very seriously but need measured approach to hikes). Bostic (non-voter) at 1215ET isn't scheduled to speak directly on mon pol.
  • Payrolls: BBG consensus for 447k in Dec after the surprisingly soft 210k. As usual, focus on the unemployment rate in conjunction with participation plus potential seasonality distortions.
  • NY Fed buy-op: Tsy 0Y-2.25Y, appr $9.325B (1030ET).
  • No Tsy issuance.

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