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SAGBs Gain Following Softer CPI Print; 1x4 FRAs Fall 8bp

  • SAGBs open on the front foot this morning following a slightly softer CPI print this morning, coming in at 5.7% y/y vs 5.8% exp.
  • Yields stand -3.8-5.1bp lower across the curve – trimming losses from yesterday’s rout in global FI driven by higher UST yields.
  • Yields rose +5.2-16bp across the curve with a bear flattening bias holding at the front end.
  • Both 10 & 30Y yields have fallen below key levels this morning at 10.20 & 10.80 respectively with 10.00 & 10.60 being the next downside supports to consider.
  • 1x4 FRA-Jiba3m spreads have also fallen from +38.3bp to +30.3bp following the print.

MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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