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Real Yields Continue To Drive To Fresh Highs Since Early 2009

US TSYS
  • Treasuries continue to push new lows, which in yield terms sees the 10YY now 10.8 higher on the day at 4.542%.
  • The day’s push remains entirely real yield driven, now +11bps on the day at 2.17% for fresh highs since very early 2009. It also marks +22bp since before last week’s FOMC decision with its hawkish dot plot, with the increase since then perhaps further helped by growing likelihood of a US government shutdown with Moody's drawing further attention to it earlier today noting its potential for a credit negative event.
  • 10Y inflation breakevens are almost unchanged over the latter period, clearly off sustained lows of sub 2.2% from earlier in the year but still relatively well anchored at 2.37%.

Source: Bloomberg

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