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Post-BOE Policy Reaction

US TSY FUTURES
  • Treasury futures remain weaker (TYU3 -13 at 110-12.5), bounced briefly after the BOE hikes 25bp to 5.25% as expected (two voted for a 50bp hike, however). Sep'23 10Y futures trading 110-11 last.
  • Short end outperforming as Tsy curves continue to steepen: 3M10Y +8.290 to -128.355, 2Y10Y +3.342 at -77.205.
  • Focus turns to weekly claims and Unit Labor Costs at 0830ET.

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