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Round of buying in Treasuries drags EGBs higher

BONDS

A round of buying led by treasuries, drag BTP, OAT, and Gilts towards the high of the session.

  • Not seen a clear trigger but potentially some short covering, with TYU1 now trading at highest level since 21/06, and next resistance eyed at that date's high 132.30 initially.
  • TY lifted in 5k, FV in 3k, USA in 2.5k, while UK Gilts sees 1.3k.
  • These are all cumulative volumes
  • Buying in Treasuries (lower yields) has pushed USDJPY down to 110.60

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