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Risk-Off Gains Momentum, Tsy Bid vs. Weaker Equities

US TSY FLOWS
Bout of negative correlation at the moment as Tsys extend session highs (30YY slips to 2.0607%) as equities trade lower (4681.0) on heavy selling/sell-programs (largest of the new year w/1400+ names on latest down-trade), Nasdaq through 100DMA around 14940.
  • Some desks citing political headlines: Rep Sinema support for filibuster -- a negative for chances of Pres Biden's Build Back Better for helping trigger risk-off move, while geopolitical tensions between Russia/US over Ukraine remain.
  • Keeping rates in-check, trading desks have reported better selling into strength with leveraged$ in 7s and 30s, pre-auction short sets ahead the $22B Bond re-open sale at the top of the hour.

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