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What to Watch: Consolidation Ahead Friday's Employment Data

US TSYS
  • US markets are in a relatively calm space ahead of Friday's key employment data for February, short end rates firmer vs. weaker Bonds for a change amid modest consolidation (June'23 10Y Treasury futures volume under 260k at the moment).
  • Treasury 2Y yield currently at 5.0516% (-.0185) after rising to new 16 year high of 5.0801% yesterday, 2s10s yield curve currently +3.255 at -105.459 after falling to new inverted low of -105.513 last seen in 1981 when Volcker was Chairman of the Federal Reserve.
  • Cautious position squaring after Federal Reserve Chairman Powell's second testimony to Congress that the upcoming NFP Friday, CPI and PPI inflation metrics next week are "going to be important in our assessment," however, "we have not made any decision about the March meeting. We’re not on a preset path."
  • Thursday focus on Initial Jobless Claims (190k prior, 195k est) and Continuing Claims (1.655M, 1.660M) at 0830ET; US Tsy $18B 30Y Bond auction re-open (912810TZN8) at 1300ET.

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