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Yields Gaining, Focus Remains on Wednesday CPI, PPI on Thursday

US TSYS
  • Treasuries are looking modestly lower at the moment, lower half of narrow overnight range as 30s unwind Monday's support. Early overnight 5Y vs. 30Y ultra-bond steepener block (+9,250 FVZ4 vs. -1,940 WNZ4) helped get the ball rolling.
  • Dec'24 10Y futures currently trade -4 at 114-29.5 vs. 114-27.5 low, well above initial technical support at 114-02.5 (20D-EMA), 10Y yield +.0112 at 3.7117%. Curves mildly flatter after disinverting last Friday (climbing to highest level since June 2022 early Monday at 7.405), 2s10s currently -.312 at +2.648.
  • No economic data on today's docket, markets await Wednesday's CPI, PPI inflation measure on Thursday. US Tsy $60B 42D CMB bill auction at 1130ET.
  • While the Fed is in policy blackout through next week Wednesday's FOMC rate annc, Fed VC Barr will discuss Basel III at Brookings event (text, Q&A) at 1000ET followed by Fed Gov Bowman on bank stress testing & capital buffers (text, Q&A) at 1215ET.

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