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### POV: Putting the 3% 10Y yld band back...>

US TSYS
US TSYS: ### POV: Putting the 3% 10Y yld band back together again! 
- 10YY looking to extend, currently at 3.0668% back to midmorning breakout
3.0668% high (June 2011 lvl)
- Tsys are back at session lows at moment, albeit amid volume thin after London
close. 
- The pre-open surge in US$ helped trigger sell-off, stops triggered as US$/Yen
sliced through 200-DMA of 110.18 earlier with the spd back to 110.26 vs.
110.38H.
- Deluge of selling, stop-outs and curve unwinds has spurred chatter of whether
negative convexity crowd is back in play. If so, very little follow through as
bounce off lows on lighter volume speaks volumes. 
- Nevertheless, desks watching current levels closely, if 3.06% yld holds in
late trade/through close renewed stop-outs/short covering can be expected, move
to 3.125% eyed.

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