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Weaker But Off Lows

US TSY FLOWS
Long end see-sawed off early session lows coming under pressure again. Reminder -- data coming up: MNI Chicago PMI (63.5 est vs. 64.7 prior) at 0945ET and U-Mich Sentiment (71.4 est steady to prior) at 1000ET.
  • Sources reported flurry of short-end buying with foreign real$ buying 2s, leveraged acct and central bank buying 3s, real$ bought 20s.
  • Likely some forced curve unwinds again as 5s30s dips below 73.0 to 72.997 for first time since March 2020, bounces back to 75.337 last. Some selling ahead expected pick-up in corporate issuance next week as earnings cycle winds down ($30B est).

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