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Long-Dated Tsys Cheapen With Gilts Post APF

US TSYS
  • Long dated Treasuries followed Gilts cheaper on the low APF sales bid-to-cover before retracing almost half the move, with the 10YY currently +3bp on the day.
  • With 2YY +6bp, outright bear flattening replaces the twist flattening seen early in the session, limiting the 2s10s flattening on the day to -52.5bps (-3bp) nearer the top of Friday's wide range.
  • The TYZ2 session low for 109-21+ (currently 109-25+) doesn’t trouble support at Friday’s low of 109-10+.

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