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Biden's Plans Dominate Local News

US TSYS

T-Notes narrow at the re-open, -0-01+ at 136-27, after the contract went out around the middle of its daily range on Thursday.

  • The cash curve twist steepened on Thursday, 30s going out ~4.0bp cheaper on the day, with some of the downward pressure linked to moves in EGBs in the wake of the latest ECB decision. Focus there fell on President Lagarde underscoring that the full PEPP envelope may not need to be used if favourable financing conditions can be maintained over the life of the scheme.
  • U.S. President Biden's COVID strategy and broader plans continued to dominate local headline flow, with the new administration continuing to push the dark winter narrative re: the former.
  • Elsewhere, 10-Year TIPS supply was well received, with breakevens extending to new cycle highs on Thursday.
  • There is nothing in the way of notable tier 1 risk slated for Asia-Pac hours on Friday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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