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Free AccessFurther Away From Session Highs, NY Adjust To Trump Odds
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.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.