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Yesterday’s Late Gains Pared, Jobless Claims And GDP Revisions Ahead

US TSYS
  • Cash Tsys trade 3-4bps cheaper as they pare gains seen in spillover from the late equity slide. They still sit well within yesterday’s range having been biased richer by notably softer than expected UK CPI inflation and having ultimately faded beats for existing home sales and Conf. Board consumer confidence.
  • TYH4 is close to the day’s low of 112-21, the middle of yesterday’s range on subdued volumes of 215k. Trend conditions remain bullish with resistance at yesterday’s 112-31+ before 113-12+ (Fibo projection of Oct-Nov price swing).
  • Today sees data focus on initial jobless claims for a payrolls reference week whilst revisions should be watched for Q3 national accounts, before the last Tsy supply of the week with 5Y TIPS.
  • Data: Third revision for Q3 national accounts (0830ET), Weekly jobless claims (0830ET), Philly Fed mfg Dec (0830ET), Conf Board Leading Index Nov (1000ET) and Kansas City Fed mfg Dec (1100ET).
  • Note/bond issuance: Tsy $20B 5Y TIPS re-open (91282CJH5) – 1300ET
  • Bill issuance: Tsy $80B 4-week bills, $80B 8-week bills – 1130ET

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