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Off Worst Levels

US TSYS

The initial cheapening impulse has given way after TU through TY futures looked through their respective Friday lows (2- to 7-Year cash Tsy yields looked through their Friday highs). Cash Tsys now run 1-2bps richer across the major benchmarks with the long end of the curve leading the bid. TYH3 deals at 114-04, +0-01, just off the top of its 0-07+ range. There hasn't been much in the way of a headline driver,. Perhaps the equity market weakness flagged elsewhere (which was a result of higher Tsy yields post-PPI data) has managed to turn supportive for the space.

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