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Bonds Extending Session Lows

US TSY FLOWS
Bonds leading gradual move lower, yield curves bear steepening in late morning trade. TYM1 -9.5/32, 132-19.5 last, still well above April 13/29 key support of 131-18.5.
  • Two-way positioning w/better selling from props and real$ accts, central bank buying in 10s earlier. Curve-wise, trading desks report real- and fast$ doing 5s30s steepeners.
  • No deal-tied flows with corporate issuers sidelined ahead shortened Friday/extended holiday weekend. Some pre-auction short-sets ahead final leg week's Tsy supply: $62B 7Y note w/yield running around 1.287% vs. 1.306% high yield at last month's auction.

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