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US TSY FLOWS
Early weakness tied to strong Australia employ data reversed on decent buying in intermediates in early Asia trade, large 5s/30s ultra-bond steepener block (+11,337 FVH2 120-28.5 vs. -1,612 WNH2 197-28) helped 5s30s climb to 65.917 high.
  • Misc acct buying in 2s-10s during early London trade evaporated on BoE rate hike to .25 followed by additional selling on ECB annc (steady, raises APP pace).
  • Trading desks note fast$, bank and dealer acct selling in long end initially, prop selling 10s, flattener unwinds (5s and 10s vs 30s). Current yields:
    • 3M10Y +1.456, 141.78 (L: 136.587 / H: 142.122)
    • 2Y10Y +2.121, 80.857 (L: 77.882 / H: 81.327)
    • 2Y30Y +3.183, 122.266 (L: 117.395 / H: 123.175)
    • 5Y30Y +3.906, 65.229 (L: 59.773 / H: 65.917)

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