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Rainbow Bridge Explosion Sees Swift Bid To Pare Losses

US TSYS
  • Treasuries have seen a swift bid, potentially on the headlines of the Rainbow Bridge explosion which has closed US-Canada border crossings in Niagara and with Fox reporting it was an attempted terrorist attack.
  • Losses for 2s to 7s trimmed to 4-4.5bp on the day now from ~6bp beforehand after strong US data in jobless claims and U.Mich inflation expectations.
  • It limits some of the flattening in 2s10s to -1.5bps at -49.5bps.
  • There doesn’t appear to be a broader cross asset reaction.

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