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Underperforming European Rally, ISM Services Headlines

US TSYS
  • Cash Tsy yields sit 2.5-3bp lower, mildly bull flattening with 2s10s at -39.5bps, whilst underperforming a larger rally across European FI.
  • European data were mixed, with softness led by a large miss for French IP before a sizeable downward revision to the UK service PMI which even then had some less comforting wage and price details within.
  • TYM4 has recently touched a session high of 111-00+ (+ 08+) with solid cumulative volumes of 310k. It eyes initial resistance at 111-02 (Mar 1 high), after which lies the 111-06 (50-day EMA) required to signal a possible reversal.
  • Data: S&P Global PMI serv/comp Feb final (0945ET), ISM services Feb (1000ET), Factory orders Jan (1000ET)
  • Fedspeak: Barr on panel about CRA modernization (1200ET), Barr in roundtable (1415ET). Powell remains more firmly in focus tomorrow.
  • Bill issuance: US Tsy $80B 42D CMB auction (1130ET)

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