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Cash Bonds Open Slightly Richer After Yesterday’s Bear-Flattening

US TSYS

TYH4 is trading at 111-13+, 0-00 from NY closing levels.

  • Cash bonds have opened flat to 1bp richer in today’s Asia-Pac session, with a slightly steepening bias.
  • This comes after US tsys bear-flattened, with yields 2-14bps higher, following stronger-than-expected US Retail Sales in December. The control group, which feeds into GDP, was the clear standout, jumping 0.76% m/m (cons 0.2%) after a slightly upward revised 0.47% (initial 0.40%).
  • A poor 20-year auction added to the weakening in US tsys.

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