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Off Session Lows, Curve Flattens

US TSYS

Tsys have recovered off session lows, firmer regional equities have boosted risk appetite and weighed on the USD aiding the bid in tsys. FOMC dated OIS now see ~70bps of cuts in 2023, ~60bps were priced earlier in the session. This leaves cash tsys 2bps cheaper to 2bps richer, the curve has twist flattened pivoting on 5s.

  • TYM3 deals at 114-09, +0-03, a touch of the top of the 0-09+ range.

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