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JPM Believe That 30-Year Supply Will Need Above-Average End-User Demand

US TSYS

J.P.Morgan note that "since the last auction, 30-year yields have increased by 23bp and are now at their highest levels since the recovery began in the spring. However, the 10s/30s curve appears somewhat flat relative to its underlying drivers, and dealer positions in long-end Treasuries remain elevated, which could make it more challenging for dealers to underwrite the auction tomorrow. Thus, despite the recent backup in yields, we think tomorrow's supply will require above-average end-user demand to be digested smoothly."

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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