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Firmer On Cross-Market Spill Over

US TSYS

The recent uptick in U.S. Tsys has been all about cross-market spill over from the ACGB space, which was linked to the Australian labour market report release that we have fleshed out in earlier bullets. TYM2 last +0-06+ at 121-00, just off recent fresh session highs. The cash curve has bull steepened with yields running 1.5-3.5bp richer as 3s outperform and 30s lag.

  • Note that some speculation re: imminent policy easing from China’s PBoC may be providing additional support, after Wednesday’s guidance from Premier Li ahead of tomorrow’s MLF operations (there is also speculation that a RRR cut may come ahead of the weekend). Note that the last week or so has seen the Chinese Premier provide several warnings re: economic growth, while the pro-growth pivot when it comes to wider policymaking has been well-documented in recent months, with the government looking to achieve an ambitious GDP growth target for calendar ’22.
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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