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Gilt opens lower than expected

BONDS
  • Gilt opened lower than expected with some very small selling in the Sonia strip, some suggestion of follow through since the PMI beats Yesterday, although the contract still hasn't tested Yesterday's low of 97.81.
  • Some desks will be watching the Gap back down to 97.49.
  • The gap lower lower in Gilt has helped Bund off its high, and US Tnotes sees TYH4 on the follow sold in over 3k cumulative, to also fade off its best level.

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