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10-yr US Tsy broke through the 3%...>

US TSYS SUMMARY
US TSYS SUMMARY: 10-yr US Tsy broke through the 3% level as European trading got
under way, supported by risk-in flows despite Trump's decision to withdraw from
Iran nuclear deal yesterday, but there was no appetite to push it much higher
and currently trades at 3.006% up 3bps since US close Tuesday. yield curve is
modestly steeper with 2s/30s 2.1bp wider at 63.7bps as 2-yr remains anchored.
- Supply possibly weighing as Germany taped 30-year Buxl for E1.5bn, UK taped
10-year Gilt for Stg2.75bn, and Portugal re-opened 5- and 10-year PGBs for
E1.2bn. Markets also looking ahead to US Tsy 10-yr supply for $25bln later and
then 30-yr supply tomorrow.
- long-dated Eurodollar futures look set to retest April's lows with Dec21 EDs
off 3.5 ticks to 96.885, lowest since 96.84 on Apr 26, volumes have been modest
though.
- US breakevens have edged wider as oil continues its up trend and markets price
in higher inflation in the medium term, while swap spreads are mixed but little
changed.

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