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30-Year UST Pulls Back Following Post-Auction Knee Jerk Spike

US TSYS

The very long-end of the UST curve is stabilising somewhat following the sharp sell-off around the 30-year auction (underpinned by a hefty tail).

  • The 30-year benchmark now trades at a yield of 1.9008%, having spiked to an intraday high of 1.9603%, while remaining above the pre-auction 1.888% level.
  • USTs are still offered across the curve following the bumper US CPI print earlier in the session, which has further fuelled debate around the nature of inflation (transitory or persistent) both for the US and globally, as well as stoking speculation around future Fed policy tightening

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