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Corrects Ylds Near lows of the week,...>

US TSY FLOWS
US TSY FLOWS: Corrects Ylds Near lows of the week, post auction selling after
large tail in 30Y R/O evaporating late while others reported steady buying in
intermediates to long end. Huge two-day Yld curve steepening since yesterday
(3M10Y appr 20bp largest since Nov 2016). Block buys short end contributing.
- Rates under pressure earlier amid fresh round of selling in lead up to Fed
Chair Powell taking podium to testify in the Senate. Early flow included prop
and fast$ buying dip here after bout of bank and real$ selling 10s and 30s.
Prop, fast- and real$ selling post auction, steepeners/flattener unwinds
- Other Fed speakers said to lean on rates as well: Atlanta Fed Pres Bostic
(non-voter, leans dove) sounded circumspect on policy easing ('does not want to
front-run conversation' on cutting rates in July); Richmond Fed Pres Barkin
(non-voter) in 'wait and see' mode.
- Big tail Tsys sell off after $16B 30Y Bond auction re-open (912810SH2) awarded
2.644% rate (2.607% previous) vs. 2.617% WI; 2.13 bid/cover (2.32 previous, 2.43
avg). The 2-Yr yield is up 3.7bps at 1.8646%, 5-Yr is up 7.1bps at 1.8973%,
10-Yr is up 8bps at 2.1413%, and 30-Yr is up 8.9bps at 2.6652%.

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