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Further Away From Session Highs, NY Adjust To Trump Odds

BONDS

The move away from session highs for bonds extends a little further.

  • Some confusion surrounding reports pointing to an uptick in ’24 German borrowing needs came after tepid demand at the latest EU bond auction.
  • These matters probably provided some of the pressure, with an extension then coming in early NY trade.
  • No headline driver evident during the latest move, with WN futures hitting fresh session lows.
  • Best explainer for the latest leg is early NY adjustments to increased odds of another Trump Presidential term.
  • U.S. 2s10s and 5s30s register fresh multi-month highs but stick within ’24 range.
  • U.S. 2s30s disinverts for the first time since late Jan.
  • A reminder that the combination of dovish moves in Fed pricing & expectations surrounding fiscal spending if Trump wins the election provide the simplest explainer for curve steepening seen over the past couple of weeks.
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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