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Test session highs

BONDS
  • Some pick up in volumes in the US treasury long end strip,
  • TYH2 is lifted in over 5k (cumulative, no blocks).
  • TYH2 is looking to test yesterday's high at 128.12.
  • Better resistance is seen towards 128.24.
  • Seeing similar bids in Gilts and Bund, with contract as expected unaffected by delta hedging flow, given the smaller size.
  • BTP still lag somewhat, translating in a small wider spread against Germany, by 1.5bps.
  • Most of the price action is seen as more correcting, as some desk square ahead of US Powell and the Senate hearing

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