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US TSYS: Mostly A Touch Firmer, 5Y Supply Headlines A Quieter Docket

US TSYS
  • Treasuries broadly consolidate yesterday’s rally in a move aided by soft labor conditions in the Conf. Board consumer survey, declines in WTI futures and a decent 2Y auction. 
  • Cash yields sit between 0.3bp higher (3s) and 0.9bp lower (20s), whilst 2s10s sees a level shift to just -5bps after the new 2Y benchmark from yesterday’s auction. 
  • TYU4 has recently pushed above yesterday’s levels with a high of 113-21 (+ 04+) but remains below resistance at 114-03 (Aug 6 high). The trend needle continues to point north. 
  • TYZ4 meanwhile has clawed ahead as the most actively traded contract, testing yesterday’s high of 114-07+. 
  • Data: MBA mortgage data (0700ET) - a quiet docket before tomorrow's 2nd national accounts release for Q2. 
  • Note/bond issuance: US Tsy $28B 2Y FRN re-open - 91282CLA7 (1130ET), US Tsy $70B 5Y note sale - 91282CLK5 (1300ET)
  • Fedspeak: Bostic on economic outlook (1800ET)
  • Bill issuance: US Tsy $60B 17-week bills (1130ET)

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