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Long End Tsys Lead Recovery From Session Lows

BONDS

A second-round bid is seen in core global FI markers, after the momentum surrounding the German DFA’s Q4 issuance reduction (which was a little larger than expected, albeit tilted towards bills as opposed to bonds) faded.

  • Demand for long end Tsys becomes apparent after 10+-Year yields tagged fresh cycle highs in Asia-Pac hours, with the curve bull flattening.
  • Crude oil and global equity index futures stabilises off session lows.
  • 10+-Year Tsys now outperform global peers on the day, although cross-market performance is more mixed further forwards.
  • Political/government shutdown matters in DC, as well as several central bank speakers (Fed, ECB & Riksbank) provide the highlights of the NY docket.
  • 2-Year Tsy supply and a raft of U.S. data is also due.
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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