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Tnotes/Bund spread widest since 2020

BONDS
  • Already some big divergence between Tnotes and Bund, pushing the spread over 6bps wider in early trade, testing 206.6bps the October high and the widest print since January 2020.
  • Desks are keeping a close eye on the US Quarterly refunding on Wednesday, which could keep Yields elevated in the US.
  • Most will investors will now look at the 210.00bps Psychological resistance in the 10yr spread.

Chart source: MNI/Bloomberg.

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