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Gradual Second Half Reversal Going On

US TSY FUTURES
Rates have been gradually trimming gains since noon is accelerating the last few minutes (30YY 2.1716 -.0483) as equities quietly move off session lows (ESH2 at 4330.0) over appr same period. No obvious headline driver, possible cross asset support as crude scaled back gains. Short-lived relief in crude as prices firming again (WTI +4.88 at 112.55).
  • Recent trade includes Tsy Block: +3,500 UXYM2 142-28.5, buy through 142-26.5 post-time offer at 1249:32ET vs. -4,917 March'22 10Y Swap futures at 99-01. Trading desks report fast$ and prop selling 10s, leveraged acct selling 30s.
  • Note, VIX has moved off first half high of 34.65 to 32.44.
  • Markets remain sensitive to Russia/Ukraine headlines -- recent cooling of risk-off tone can turn on a dime

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