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Extend lower Post PMI

US TSY FLOWS
  • US Treasuries extends losses following the decent Chicago PMI print.
  • Less reaction in EGBs, with Larger Month End extension in Europe, likely underpinning Govies.
  • Expect more going into 16.15BST
  • US extensions are small, so more impact in US.
  • US yields push higher, providing USD with another leg higher
  • US/Bund 10yr widens 2.4bps to 185.06bps

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