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Tsy Ylds Resume Climb Ahead Midweek FOMC Annc

US TSYS
Tsys yields gained as November got underway, levels back near middle of Friday's range, yield curves steeper on moderate volumes.
  • Sights set on Wed's FOMC policy annc where $15B/month taper is expected with particular attention on inflation dynamics. Last but not least: Friday's October employment data: +450k median estimate up from +400k job gains last Friday.
  • Session flow largely two-way position squaring ahead the Fed and jobs data risk events. Nevertheless, Tsy futures held weaker levels/off lows by the close, equities higher/off new all-time highs from the first half (ESZ1 4619.5). US$ pared some of Fri's strong gains (DXY -.235 at 93.888).
  • Data remains muted Tuesday but picks up early Wednesday with ADP private employ figures at 0815ET (+400k est vs. +568k prior), and Tsy quarterly refunding at 0830ET.
  • The 2-Yr yield is up 1bps at 0.5071%, 5-Yr is up 0.7bps at 1.1896%, 10-Yr is up 1.6bps at 1.568%, and 30-Yr is up 3bps at 1.9631%.

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