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Modest Bear Flattening, Yields Move Back Towards Friday Highs

US TSYS

Friday’s moves (cheapening, as we fleshed out earlier) remain at the fore, applying light pressure to Tsys in early Asia-Pac dealing as regional participants adjust. Bear flattening has remained apparent, with the major benchmarks sitting 1-2bp cheaper shortly after the cash re-open, outright yield measures move close to a re-test of their respective Friday peaks.

  • In the background we also flag the latest WSJ survey, which noted that "the economy is proving more resilient and inflation more stubborn than economists expected a few months ago, and as a result the Federal Reserve will keep interest rates high for longer.”
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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