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What to Watch: Weekly Claims, 7Y Sale, Covid Curbs

US TSYS

Tsys trading mixed, 5s-10s outperforming mildly weaker 2s and Bonds, yield curves scaling back small portion of week's steepening: 2s10s currently -1.404 at -48.873. Continued light holiday volumes (TYH3<160k).

  • Focus on upcoming data at 0830ET (prior, est): Initial Jobless Claims (216k, 225k); Continuing Claims (1.672M, 1.706M).
  • Wrapping up the week's Tsy auctions: $45B 4W, $45B 8W bill auctions at 1130ET; $35B 7Y Note auction (91282CGB1) at 1300ET.
  • Mkt keeping close eye on Covid infections: mkt optimism over China reopening faded Wednesday as infections surged (MILAN REPORTS 50% PASSENGERS WITH COVID IN FLIGHTS FROM CHINA, Bbg; US TO REQUIRE NEGATIVE COVID TEST FOR TRAVELERS FROM CHINA, Bbg).

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