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Bank-Tied Risk-Off

US TSYS
  • Treasury futures stage a broad rebound back bear pre-ECB levels in the last few minutes, real-vol delivering as markets negatively reacting to new banking related headlines, PacWest in the crosshairs now (shares down appr 40%) after bank confirmed they were in talks with potential buyers.
  • After 10Y futures marked a post-ECB low of 115-31, the contract rallied to 116-15 (+20) after stocks opened, but have slipped back to 116-10 amid decent two-way flow now (heavy volumes, TYM3>865k).
  • Stock indexes not faring too badly at the moment, while financials are the main driver in weighing on SPX: E-Mini Future down 23.75 points (-0.58%) at 4082.25; DJIA down 220.32 points (-0.66%) at 33186.66; Nasdaq down 57.3 points (-0.5%) at 11967.85.

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