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EGB Pressure Weighs

US TSYS

The € IG & sovereign supply-derived weakness in EGBs (that we have flagged elsewhere) generates fresh selling pressure in Tsys during the early London morning, with cash Tsys now running 1.5-4.5bp cheaper as the curve bear flattens. TYU3 is +0-02 on the day, 0-01 off the base of its 0-08+ range, comfortably within the confines of Tuesday’s session boundaries. Headline flow has been very light thus far. The previously outlined FV block dominates on the flow side, with the 4,179 lot block seemingly initiated by a buyer (based on quotes at the time of the block), even as the market sold off.

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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