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Still Ticking Higher

US TSYS

Cash Tsys tick richer, the major benchmarks now sit 3.5-6bp richer across the curve, with the front end still leading, although the space is nowhere near unwinding Wednesday’s cheapening. TYM2 trades to fresh session highs, last +0-11+ at 127-20+. Overt headline drivers remain light on the ground. Crude oil has shunted higher once again, could Asia-Pac participants now be looking more towards stagflationary risk re: oil, as opposed to an outright inflationary impulse (the Tsy market’s interpretation of higher oil prices has been mixed in recent days). Note that breakevens sit closer to their closing levels than Wednesday’s session wides, but TIPS are illiquid during Asia hours.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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