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Front End Gains Peter Out After Germany CPI

US TSYS
  • Front Tsys pause gains seen in the lead up to German national CPI inflation, remaining off earlier highs.
  • It translates to 2YY -4.3bps, which having caught up with the earlier, larger rally in 10s, it leaves 2s10s near unchanged on the day at -76bps, compared to early yesterday’s sustained lows of -81/-82bps being the lowest since Mar 10.
  • Some potential spillover ahead with CAD GDP at 0830ET but the main data focus will be on the MNI Chicago PMI followed soon after by JOLTS.

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