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Bonds Extending Highs

US TSY FUTURES
  • Front month Tsy futures continue to extend post-data highs, 30Y looking to test early Monday high of 132-30 with USM3 recent high of 132-19, 30Y yield slips to 3.6214% low recently.
  • Yield curves top early Mon high, trades -29.39 with 2Y futures outperforming: TUM3 taps +104-01.62 high. For comparison, 2s10s had slipped to appr -111.0 last week, a 40Y low.
  • Aside from softer than expected data this morning, sell-off in European bank stocks continue to add to risk-off support: Credit Suisse -30%, BNP and Societe Generale also pressed while implied rates pricing in 25bp rate cut in May now.
  • BBG/MNI


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