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Curve Bull Steepens, Fitch Downgrade Of The U.S. Front & Centre Ahead Of Refunding & ADP

US TSYS

Tsys are on/a little off their post-Fitch downgrade of U.S. sovereign credit rating-driven bests, wrestling with the risk-off tilt the news flow has facilitated and the U.S. fiscal outlook. That leaves the major cash Tsy benchmarks running flat to 4bp richer, with bull steepening in play. TYU3 is +0-10, 0-01+ off the peak of its 0-07+ Asia-Pac range.

  • A quick reminder that Tsy Secretary Yellen flagged her strong disagreement with the move from Fitch, suggesting it was “arbitrary and based on outdated data.”
  • Looking ahead, focus will fall on the European readthrough from Fitch’s move, before the latest quarterly refunding announcement (click for our full preview of that event) and ADP employment data cross.
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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