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5/30s seeing continued Bear steepening

BONDS
Small bid in S&P and Treasuries stays offered post ISM beat, but moves are tiny.
  • Bund is seeing small better selling on the margin.
  • 5/30s is now clearly through that initial target (noted on the open) at 67.957 (07/09 high). Next upside target is now at 69.00 (02/09 high)
  • Worth a note, that tomorrow we get a huge amount of supplies from France for EU10bn-EU11bn, which equates to a massive 110k OATs

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