Curve Twist Flattens, Aided By TU Block

The previously outlined block sale in TU futures helps the broader Tsy space to cheapen away from richest levels of the day, along with promoting a twist flattening move as 2s cross back above 4.00% in yield terms. TYM3 fails to threaten its intraday base thus far, although TU futures look through their early session lows. There hasn’t been much in the way of meaningful headline flow to flag, with Fed Governor (and one of the names apparently in the picture to become President Biden’s pick for the open Fed Vice Chair role) Jefferson pointing to a sound and resilient banking sector, while he also noted that inflation has started to come down, while the economy has started to slow in an orderly fashion. A bid in the broader DXY will have done the move in the front end of the Tsy curve no harm.