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Modest Twist Steepening Observed

US TSYS

TYH2 has recovered from session lows, with e-minis and Chinese equities back from best levels. Most of the headline flow observed since the Asia-Pac re-open has focused on geopolitical matters, namely the impending phone call between U.S. President Biden & Russian President Putin, and speculation re: further Chinese monetary easing in the wake of Monday’s announcement re: a RRR cut. TYH2 last +0-00+ at 130-21+, operating 0-02+ off the base of its 0-06+ range, while cash Tsys have provided some modest twist steepening around the 5-Year point of the curve, with the major benchmarks loosely within -/+0.5bp tolerance bands vs. Monday’s closing levels.

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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