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Twist Flattening To Back Near Recent Flats

US TSYS
  • Cash Tsys have twist flattened as the front end continues to be pinned by rate hike expectations and the longer end rallies on broader risk-off sentiment from Russia-Ukraine.
  • The 2s10s spread is back near Friday’s lows at 41bps, the flattest since Aug 2020.
  • 2YY +1.3bps at 1.513%, 5YY -1.7bps at 1.838%, 10YY -1.6bps at 1.922% and 30YY -1.2bps at 2.226%.
  • TYH2 is at the high end of today’s range at 126-20, close to pre-CPI levels and again on above average volumes. Resistance is seen at 127-01 (Feb 7 high) and support at 125-17+ (Feb 10 low).
  • Bullard will be in focus as he speaks again at 0830ET after saying he was open to an intermeeting hike following Thursday’s CPI release. No data of note today.
  • US Tsy $60B 13W, $51B 26W bill auctions (1130ET).

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