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Bonds Extend Session Highs Ahead 10Y Auction Re-Open

US TSY FUTURES
No Block buy or obvious headline driver for bonds extending session high last few minutes (30YY falls to 3.8754% low) before scaling back slightly. Some desks cite delayed response to ECB Holzmann comments for clearing book offers - creating air pocket for nascent bid.
  • Holzmann, at the hawkish end of the ECB spectrum, told CNBC that the market has a good sense of the ECB's next meeting, with a 100bp hike beyond what is needed, sees a 75bp hike in Oct and 50bp in Dec to get us to neutral, with the ECB then assessing QT once at neutral.
  • In the meantime, WI 10Y scaling back ahead the auction cut-off at the top of the hour, currently 3.912% vs. 3.920%.

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