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Front End Paring Losses, 2Y Back Unchanged

US TSYS
  • Treasuries are continuing to pare some earlier losses through Fedspeak, with the 2YY now unchanged on the day at 5.21% for 3bps off session highs.
  • Potentially linked to Waller in Q&A pointing to the rise in long rates accomplishing tightening, even if he flagged in prepared remarks that additional policy tightening would likely be needed if the real economy continues showing underlying strength and inflation appears to stabilize or reaccelerate.
  • Williams remarks shouldn’t have moved the needle too much, whilst we’re still to get Bowman and Barkin at the top of the hour along with 20Y supply (20s still leading the day’s sell-off at +10bps).
  • 2s10s back nearing session highs, currently at -30.1bps. Recent highs of -25bps after payrolls on Oct 6.

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