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Bonds Extend Sell-Off, Curves Near Highs

US TSY FUTURES
Tsy 30Y Bonds extended session lows last few minutes -- no obvious headline or technical driver. Unlikely QT driven as initial asset focus on bills, while short end already pricing in 50bp hikes. Perhaps moves more of a broader react to structural position changes after StL Fed Bullard vocalized Fed policy too low, should be 300bp higher.
  • Note two large curve flattener blocks: 2y/10Y-ultra at 1034ET and 2Y/10Y at 1111ET -- fading the rebound in curves off deeper inversions since early Monday Asia trade: 2s10s currently at 19.504 (+7.305) vs. 21.622 high after hitting -9.531 low Sunday evening.

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