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Front End Continues To Lead Weakness, 2-/10-Year Spread Hits New Cycle Extrems

US TSYS

Pressure remains on the Tsy space as Asia reacts to day one of Fed Chair Powell’s two-day circuit on the Hill, leaving TYM3 hovering within touching distance of Tuesday’s trough, last -0-05 at 110-25+, 0-01 off the base of its 0-07 session range, while cash Tsys sit 1.5-3.5bp cheaper as the curve bear flattens. A reminder that 2-Year Tsy yields have breached Tuesday’s high, operating at the highest level observed since ’07. The 2-/10-Year Yield curve has registered fresh cycle extremes when it comes to the level of inversion witnessed.

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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