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Bull Steepening On Safe Haven Flows

US TSYS
  • Despite modestly softening through the European session, cash Tsys remain significantly firmer on the day in a bull steepening on safe haven flows. The front-end sits 13.5bps off post-US CPI highs although whilst it’s steepened, the curve remains relatively flat with 2s10s at just 41bp.
  • 2YY -7.4bp at 1.496%, 5YY -6.7bp at 1.798%, 10YY -5.2bp at 1.910% and 30YY -3.5bp at 2.238%.
  • TYM2 sits 22 ticks higher at 126-27+ but within the session range, on strong volumes.
  • Data: International trade, wholesale & retail inventories, the MNI Chicago PMI and Dallas Fed manufacturing activity survey.
  • Fedspeak: Bostic (non-voter) speaks in a moderate virtual discussion with Q&A (1030ET). Powell ahead on Wed.
  • Bill issuance: US Tsy $60B 13W, $51B 26W bill auctions (1130ET).

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