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Core FI continues to bull steepen

BONDS
  • The big moves in core FI continue in line with the risk-off picture seen, particularly in European equities.
  • 2-year yields are now all at least 23bp lower on the day in the US, Germany and UK, with Schatz the biggest mover (yields down 27bp at writing).
  • 2s10s curves are around 10bp steeper on the day in Germany and the US with the steepening less explicit in gilts (around 3.5bp on the day).
  • At present Bunds are trading around 139.36 (230 ticks higher on the day) but still around 90 ticks off Monday's high of 140.30.
  • TY1 has broken through Monday's high of 116-24 and has just breached 117-00.

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