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Greenback Shrugging Off CPI Inspired Yield Spike as Curve Flattens

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  • The USD remains offered against all others in G10, with EUR/USD extending the post-CPI rally to again near key resistance layered between the February/January highs at ~1.1485.
  • Move lower in the greenback shrugs off the surge in nominal yields across the curve, with the 10y yield topping 2.00% for the first time since mid-2019. Instead, currencies appear to be following the flattening pattern across the yield curve, with the 2y10y and 2y30y spread tightening by 5 - 7bps.

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