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J.P.Morgan Believe 10-Year Supply Will Require Further Concession

US TSYS

Ahead of Wednesday’s 10-Year Tsy auction J.P.Morgan note that “despite rising 10bp since the January auction, 10-Year yields are still too low relative to fundamental drivers. Additionally, the recent pricing dynamics have run well ahead of historical trends around late Fed tightening cycles. Turning to relative value, the 10-Year sector looks fairly valued on the wings after adjusting for rate levels and curve slope. With valuations looking rich to fair we think tomorrow’s auction is likely to require a further concession from current levels.”

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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