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Off Lows, Trade Remains Tight

US TSYS

The combination of news of the latest localised lockdown in China (covering some neighbourhoods in Zhengzhou, Henan) and the previously outlined pressure in Chinese equities has seemingly been enough to put a modest bid back into the Tsy space, leaving TYH2 +0-02+ at typing, printing 129-16+. Cash Tsys sit 0.5bp cheaper to 1bp richer across the curve, with twist flattening still in play. Note that bears have so far failed to force a test of initial technical support (129-12+), with a low of 129-13+ registered.

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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