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Twist Steepening On Limited Drivers

US TSYS
  • Cash Tsys have twist steepened this morning as they move on from Friday’s huge post-payrolls moves.
  • 2Y yields are -0.7bps at 1.302%, 5Y +0.7bps at 1.773%, 10Y +1.3bps at 1.921% and 30Y +1.3bps at 2.223%, but all remain a little below Fri highs.
  • TYH2 is at the low end of today’s narrow range at 126-27 with volumes modestly above average. Resistance is 128-08+ (20-day EMA) whilst support is 126-23 (Jul 17, 2019 low).
  • Data limited to consumer credit for Dec (1500ET) but attention instead on the key CPI release for Jan on Thu.
  • Bill issuance: US Tsy $60B 13W, $51B 26W bill auctions (1130ET).

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