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Light Bear Flattening Seen, Space Just Off Lows

US TSYS

Tsys initially extended on their early downtick but have corrected away from worst levels, with the previously alluded to regional fading of Thursday’s rally and BoJ rhetoric perhaps the source of the early pressure.

  • The recently lodged TY block sale (-1,250 lot) failed to force a meaningful extension lower, with the contract subsequently edging away from lows.
  • That leaves TYH3 -0-02+ at 114-17, 0-01+ off the base of its 0-07+ session range. Cash Tsys sit 2.5-3.5bp cheaper across the curve, bear flattening.
  • There wasn’t much in the way of meaningful reaction to another modest downtick in the daily new COVID case count in China.
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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