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Minutes Weigh, 5+-Year Yields Hit Fresh ’23 Highs

US TSYS

Tsy yields have ticked away from session highs after 5+-Year yields registered fresh ’23 highs in Asia hours. Benchmark yields are 2-5bp higher, with the curve steeper.

  • TY is -0-09+, 0-03 off lows, after registering fresh YtD lows overnight, edging closer to its ‘22 lows in the process.
  • FOMC meeting minutes and a poorly received round of 20-Year JGB provided headwinds for bonds, although softer than expected labour market data out of Australia provided some brief reprieve.
  • Cross-market, we have seen the USD move away from best levels, while e-minis are off worst levels as London settles in.
  • FOMC-dated OIS shows terminal rate pricing of 5.44%, a touch firmer than this time yesterday (owing to FOMC minutes), with ~46.5bp of cuts then showing through June ’24, meaning that some easing has been priced out over the last 24 hours.
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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