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J.P.Morgan Believe 2-Year Supply Will Be Digested With Relative Ease


J.P.Morgan note that Tuesday will see the Treasury "auction $60bn 2-Year notes, unchanged in size from last month. Since the April auction, 2-Year yields have risen 10bp, with the majority of the move occurring in the aftermath of last week's hawkish FOMC meeting, and are trading at their highest levels since April 2020. The WI 2-Year roll opened at +0.875bp, in line with our fair value estimate, and is now trading at +1.125bp, underperforming the erosion of carry. With the recent move to higher yields, we think tomorrow's auction will be digested with relative ease."

MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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