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Light Twist Steepening Seen

US TSYS

Cash Tsys have twist steepened vs. Monday's closing levels, taking some influence from Tuesday's price action in core global FI after the Independence Day holiday. That leaves the major benchmarks running 2bp richer to 1bp cheaper, pivoting around the 7-Year point. TYU3 is -0-01, erasing the light uptick that was seen on the back of the softer than expected Caixin Services PMI print out of China, sitting around the middle of yesterday's range. FOMC-dated OIS shows ~21bp of tightening for next month's gathering, with a cumulative ~33bp of tightening showing through November, for a terminal rate of 5.41%. Beond there, ~59bp of cuts are showing through June '24.

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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