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Volatile Session Continues As Volumes Wane

US TSYS
  • Treasuries volatility continues with front end yields retracing a sizeable amount of the post-0830 data cheapening but now re-cheapening once again.
  • The 2YY is currently 4.231% with a day’s range of 4.185-4.265% (4.21 pre-data).
  • Upward revisions for GDP and marginally for core PCE plus further resilience in weekly jobless claims have seen front-end selling pressure with 3-10Y tenors outperforming. The 5Y TIPS re-open follows at 1300ET.
  • In TYH3 space, the bear threat remains present, trading at 113-20 with support at 113-09+ (Dec 21 low).

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