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Shorter end Govies and rates underperform

CROSS ASSET
  • Shorter front end, 5s, 2s Germany and Front 2 Euribors continue to underperform.
  • Schatz has now fully unwound the US ISM rally and test last Friday's low of 106.055, the lowest print since 13th December.
  • Next support comes at 105.985.
  • German 5s/30s test session low leans flatter give the price action in 2yr Schatz, and latest flow, sees Schatz sold in over 5k through that mentioned low, Bund 5k, and BTP over 1k, all 2yr led.

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