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Extending Lows, Short End Catching Up With Bond Sale

US TSYS
  • Treasury futures extend session lows the last few minutes, curves bending from steeper to flatter as short end rate sellers catching up up with bonds.
  • No particular headline as 2Y futures fall 7.12 to 102-30 low, yield mark 4.1158% high; 10s -16.5 to 114-23 low; 2s10s curve -3.352 at -54.625.
  • Markets should also be seeing launch of Pfizer multi-tranche debt issuance, potentially larger than an already huge $30B estimate, spurring additional rate lock sales.

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