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Finding an early bid

BONDS
  • Some short cover going through in Treasuries and Bund since the German cash open.
  • Desks were mostly positioned short going into the Fed yesterday, but Fed Powell mostly delivered as expected with the faster pace of Taper already priced in and favoured by most investors.
  • Although he signaled, that rate would rise given the inflation risk, tightening would be gradual and outlook could quickly change with Covid at the forefront.

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