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Bull steepening

BONDS
  • Core fixed income has seen a bull steepening this morning as markets question near-term rate hikes in the wake of the uncertainty over the banking sector from the failure of two US banks, but continue to see the medium-term outlook unchanged.
  • The biggest steepening has been seen in USTs with 10-year yields down 3.6bp but 2-year yields down 16.1bp at writing. This has moved the US 2s10s curve +35bp to -76bp from a low of -111bp on Wednesday.
  • German 2s10s is around 3.5bp steeper than Friday's close at -56.1bp while UK 2s10s are now at 1.9bp, up 2.8bp from Friday's close.

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