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Treasuries Unwinding Monday's Steepening

US TSYS
  • Cash Tsys have firmed almost since the open as they unwind some of yesterday’s large sell-off.
  • With gains led by the front-end after the 2YY yesterday touched highs of 1.89% (highest since July 2019), the curve steepens slightly with 2s10s up 1.5bps to 28bps.
  • 2YY -4.5bps at 1.816%, 5YY -3.3bps at 2.057%, 10YY -2.8bps at 2.106%, 30YY -2.4bps at 2.447%.
  • TYM2 is 9 ticks higher at 125-03 on slightly above average volumes. It sits above an early intraday low of 124-18, which should form initial support after which it could open support at 124-15 (May 23, 2019 low cont). Resistance is eyed at 126-13+, Friday’s high.
  • Data: PPI inflation for Feb (0830ET), Empire mfg for Mar (0830ET).
  • No Tsy issuance

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