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Treasuries Soften On Putin Headline

US TSYS
  • Cash Tsys sell-off on a headline from Putin seeing ‘certain positive developments’ in talks with Ukraine before giving back only a small part of the move as a transcript appeared less positive.
  • The curve bear flattens on the day as the 2YY touches new post-pandemic highs and unwinds yesterday’s steepening with 2s10s at 26bps.
  • 2YY +4.6bps at 1.742%, 5YY +2.8bps at 1.951%, 10YY +2.3bps at 2.009% and 30YY +1.2bps at 2.379%.
  • TYM2 sits just 2 ticks lower on the day at 125-30+ on what has been extremely low volumes prior to a pick up on latest headlines. It sits just above support at 125-29 (Feb 25 low) after which it could open the bear trigger of 125-14+.
  • Data: Preliminary U.Mich consumer survey for March(1000ET). Focus on inflation expectations after the long-term measure was trimmed a tenth to 3.0% in February.
  • No Tsy issuance.

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