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Tnotes/Bund spread tightens by over 10bps

BONDS
  • TYM3 lifted in 4k, helps USDJPY to again test the 133.00 handle.
  • Some decent diversion, between the US and Germany, after Europe was closed Friday/Monday, and Tnotes saw some exacerbated downside move on Friday and yesterday following the US NFP beat.
  • On the other hand, AHE and under employment were lower versus last.
  • Tnotes/Bund spread is now 10.6bps tighter, with support coming at 108.93bps, the April low and tightest print since September 2020, now trading at 112.9bps.

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