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Cash Undergoes Catch Up Bear Steepening Adjustment After Long Weekend

US TSYS

Tsy futures have looked through COVID-related headlines out of China, with mass testing set to be implemented in the city of Shanghai through early November (conducted at least twice per week), while the People’s Daily news outlet stressed that China must stick to its ZCS. TYZ2 deals +0-01+ at 111-02, in line with late NY levels, operating within a very narrow 0-02+ trading band tus far.

  • Cash Tsy trade has seen the required adjustment higher in yields after Monday’s futures price action, with the major benchmarks running little changed to 9bp cheaper, bear steepening.
  • 30-Year yields have printed a fresh cycle high in the process, operating just below 3.95%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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