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2YY Unwinds Post-ISM Services Rally

US TSYS
  • Front end Tsys have continued to more earnestly pare earlier gains, with the 2YY now -7.5bp and 10YY -5bp, as the 2YY has fully unwound the further rally on the ISM Service miss.
  • It sees 2s10s back well within the day’s range at -46bp, with post-ISM very brief highs of -37bp and lows of -52bps prior to the US coming in.
  • TYM3 at 116-17+ remains off earlier highs of 116-30 having got close to the bull trigger at 117-01+ (Mar 24 high).

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