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What to Watch: Pending Home Sales

US TSYS

Tsys firmer, modest rebound from Tue's sell-off that saw 10YY tap 3.8581% high, currently 3.8165% -.0246. Improved volumes (TYH3>175k) with London back from extended Christmas holiday.

  • Yield curves continue to climb off deeper inversion, 2s10s +2097 at -51.848 (mid-November levels).
  • Data on tap at 1000ET (prior, est): focus on Pending Home Sales MoM (-4.6%, -1.2%); YoY (-36.7%, --) - after five consecutive monthly declines, the last two totaling 13%. Also see Richmond Fed Mfg Index (-9, -10) release at same time, LINK.
  • Another busy day for Tsy auctions: $22B 2Y FRN Note auction re-open (91282CFS5) and $33B 17W bill auction at 1130ET, followed by $43B 5Y Note auction (91282 CGC9) at 1300ET.

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