US TSYS: Unwound Early Risk-On Move After PMI Beat, Busy Data Day In The US Later

TYH4 is trading at 110-31, + 00+ from NY closing levels.

• Tsys traded near late session lows after the bell, with yields higher by about 5bps across the curve.
• Treasury futures, had recovered from Tuesdays modest sell off to trade back to 111-16, however pared gains after larger than expected gains for S&P Global US PMIs for January: Mfg PMI (50.3 vs. 47.6 est, 47.9 prior); Services PMI (52.9 vs. 51.5 est, 51.4 prior); Composite PMI (52.3 vs. 51.0 est, 50.9 prior).
• Tsys gapped lower/tested lows (5Y yield climbed to 4.0885%) after $61B 5Y note auction (91282CJW2) tailed: 4.055% high yield vs. 4.035% WI; 2.31x bid-to-cover vs. 2.50x in the prior month.
• The rise in yields after the weak auction spilled over to equities as accounts took profits ahead Thursday's data.
• Later tonight in the US: GDP, PCE, Weekly Claims and Treasury Sec Yellen Outlook