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Light Twist Steepening Creeps In During Contained Pre-FOMC Trade

US TSYS

Cash Tsys have been subjected to a light twist steepening impulse after the early, but modest, cheapening, as the major benchmarks run ~1.5bp richer to ~1.5bp cheaper, pivoting around 10s.

  • TYZ2 deals -0-03 at 109-30, just off the peak of its narrow 0-06 range, with market flow headlined by the previously outlined block sales in that particular contract (-1.4K & -1.9K).
  • There hasn’t been much in the way of meaningful news flow to drive the space, with external forces (in the form of the bid in the Aussie short end and pressure in the long end of the JGB curve) perhaps being felt in Tsys.
  • The Tsy market has stuck to a contained range, as is typically observed in a pre-NFP Asia-Pac session.
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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