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J.P.Morgan Look For 30-Year Supply To Be Digested With Relative Ease

US TSYS

J.P.Morgan note that Wednesday will see Treasury “auction $20bn reopened 30-Year bonds, unchanged in size from last month. Since the last auction, 30-Year yields have risen by 43bp and the 5s/30s curve has flattened 30bp. That being said, 5s/30s has steepened 26bp over the last week and now appears steep relative to the level of front-end yields. Overall, although volatility remains elevated, we think that given the recent underperformance of the long end, combined with ongoing demand from the pension fund community, tomorrow’s supply should be digested with relative ease.”

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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