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Cheapening Extends Alongside Core Global FI Peers

US TSYS

The cheapening in core European and UK FI markets applies pressure to U.S. Tsys in pre-NY holiday-thinned/curtailed trade.

  • That allows TYZ3 to move as low as 108-12+. Initial support is located at the 50-day EMA.
  • Cash Tsy yields are 3.5-7.5bp higher, with bear steepening and a degree of post-Thanksgiving catch up noted there.
  • 2s10s and 5s30s stick within the ranges established in recent weeks.
  • Japanese adjustment to Thursday’s market moves (Thursday was also a holiday in Japan) and a block seller in UXY futures (-2K/DV01 ~178K) helped apply pressure in Asia-Pac hours.
  • Quarterly roll activity continues to artificially boost volume in futures.
  • Flash S&P Global PMI data headlines the NY docket.
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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