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Positive Correlation To Equities Back

US TSY FUTURES
After a respite Monday, the positive correlation between Tsy futures and equities is back on: Bonds reversing gains as equities trade weaker: ESH1 making new session lows around 3877.0 (still off overnight low 3866.5).
  • Yield curves holding steeper profiles, however, 5s30s +3.252 at moment, just off session high of 153.150 (compares to last Thu's 7Y high of 166.984).
  • Trade more two-way, positioning ahead Fri's Feb NFP, option and deal-tied hedging in the mix, rate paying unwinds in the intermediates to long end.

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