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Cheapening Extends

US TSYS

Cash tsys now sit 1-8bps cheaper across the major benchmarks, the curve has bear flattened. FOMC dated OIS have seen the terminal rate tick higher this morning to a touch under 5% and the pricing for cuts in 2023 is now at 60bps down from ~70bps at yesterday's close. TYM3 deals at 114-02+, -0-03+, a touch off the base of the observed 0-08 range.

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