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2Y Yields Soaring, 2s10s Nearing Historic Inversions

GILTS

UK 2Y cash yields are set for their biggest daily rise of 2023 and one of the biggest since the mini-budget turmoil, +20bp on the day to the highest level since mid-October at 3.839%.

  • This follows strong UK wage data bumping up BoE terminal rate expectations, and a push higher in US Fed hike pricing.
  • The curve is bear flattening: UK 2s10s are set for their most inverted close (-31.2bp) since September; prior to that the most inverted close was in 2008.

UK2s10sSource: BBG, MNI

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