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Curve Bear Steepens On Wednesday

US TSYS

TYZ3 deals at 105-20+, -0-01, in line with late NY levels.

  • Cash tsys finished 5-15bps cheaper across the major benchmarks, the curve bear steepened.
  • The 2s10s inversion dealt at its highest level since mid 2022 and finished the session at -16.1bps.
  • Tsys were pressured yesterday alongside a bid in the USD and Oil and falling US Equities.
  • The belly extended losses after the latest 5-Year auction tailed, and pressure in the space extended as Israels PM Netanyahu stated that Israel is preparing for a ground invasion of Gaza.
  • In Asia today the docket is light, further out we have US wholesale inventories, GDP, US durable goods, initial jobless claims and pending home sales. We also have the latest 7-Year Supply.

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