September 28, 2022 15:19 GMT
Bonds continue to extend highs in late morning trade as market awaits results of BoE Gilt purchases results in long end (imminent).
- Short-end yield curves reverse course: 2s10s -3.400 flatter now at -37.803 vs. -23.612 low amid strong selling in 2s and 5s.
- Swap-tied selling in 2s-10s as spds stand 2.5-4.0bps wider at the moment.
- Pre-auction short sets ahead $36B 7Y note auction as well, running 3.895%, appr 76.5bp cheaper than last months high yield.