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More on Bond Sales, Bear Curve Steepening, Driver Speculation

US TSY FUTURES
Yield curves holding steeper levels (2s10s +6.334 at -45.948), while trading desk speculation on potential drivers include:
  • UNCOINFIRMED chatter: Japan FinMin selling Tsys to support FX intervention is raising some eyebrows (after similar occurred after after PBoC intervened in 2015, one desk say).
  • delayed reaction to BoE rate hike with long end Gilts under heavy pressure.
  • Curve flattener unwinds/profit taking in the aftermath of Wed's post-FOMC flattening.

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