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Treasury Sell-Off Returns

US TSYS
  • Cash Tsys have sold off ~3bps this morning, in a very slight bear flattening. 2s10s remain within their rough post-FOMC range, currently at 62.5bps.
  • 2YY are +3.1bps at 1.321%, 5YY +3.0bps at 1.795%, 10YY +3.1bps at 1.947% and 30YY +2.7bps at 2.244%.
  • TYH2 has fluctuated this morning on heavy volumes (~160% of average), currently sitting at 126-20+ having moved lower to a new low of 126-15+. This briefly tested support of 126-16, the 1.236 projection of the Jan 13-19-24 swing.
  • Data: Updated seasonal factors for CPI plus second tier data releases of NFIB small business optimism for Jan and international trade for Dec.
  • NY Fed buy-op: Tsy 22.5Y-30Y, appr $1.825B (1030ET)
  • Issuance: US Tsy $50B 3Y Note auction (1300ET)

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