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Tsys, Equities Paring Losses

US TSYS
Still weaker, long end Tsy futures leading rebound off lows (Ultra-bond well into the green: WNH3 +18 at 141-05), dragging balance of curve off lows last few minutes.
  • Apparently reacting to headlines that the EU has agreed to put a "$60 price cap" on "Russia oil exports". No react in WTI or Brent crude, while equities have moved to pare losses (ESZ2 -18.75 at 4063.0).
  • Short end remains well bid (EDZ2 +2.5 at 95.16) amid expectations the Fed will only hike 50bp on Dec 14, while early-mid 2023 futures pricing in elevated chances of 75bp return.

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