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US TSYS

The Tsy space has moved away from Asia cheaps in recent trade, although there has been a lack of overt headline flow. A reminder that the early selling impetus came on the back of an uptick in the e-mini space and hawkish rhetoric from ’22 FOMC voter Mester (a known hawk). TYH2 last -0-00+ at 130-29, 0-02 off lows, after a bid took the contract a touch above current levels. Cash Tsys currently run 2-3bp cheaper across the curve, with the 3- to 7-Year zone leading the weakness. The market remains skittish, seeking facts regarding the Omicron situation, while weighing up growing expectations for an accelerated tapering process on the part of the Fed.

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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