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2s10s Nearing Most Inverted Level In 23 Years

GILTS

With Wednesday's CPI reading looming this week ahead of the BoE, it's notable that UK 2s10s are on track for the most inverted closing level in 16+ years, at -58.6bp.

  • Just a few weeks ago 2s10s were flat - that was May 23 - on May 24 we got the April CPI reading that kicked off the most recent sell-off led by the short end.
  • 2s yields are up 10+bp on the day at a post-2008 high of 5.05%, with 10s up 6+bp at 4.47% (both rounded).
  • -60.3bp is the Jan 2007 closing low. Beyond that point lies levels of inversion not seen since 2000.

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