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Twisting Flatter

US TSYS

Interestingly, Tsys have pulled back from best levels of the session after the BoJ announced its intention to defend the top of its permitted 10-Year JGB yield trading band, via fixed rate operations. JGBs pulled back from the limited initial reaction spike higher, with divergence between the BoJ and the likes of the U.S. Fed ever clearer. That leaves TYM2 +0-05 at 121-22+ around the middle of the contract’s 0-15 range. Cash Tsys run 3.5bp cheaper to 0.5bp richer across the curve, with the front end leading the cheapening and the curve pivoting around the 7- to 10-Year zone.

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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