TYH4 Re-Opens Flat After Yesterday’s Extension Rally

TYH4 is trading at 112-16+, flat from NY closing levels.

• This comes after cash tsys extended the post-FOMC rally with a bull-flattening. Yields finished 4-14bps lower across bechmarks.
• The 2-year yield declined 7bps following yesterday’s 25bp drop, which was the largest daily decline since the collapse of Silicon Valley Bank in March. The 10-year yield fell 10bps to 3.92%, the lowest level since June.
• Elsewhere, the ECB and BOE both left rates on hold but signalled that bets on imminent rate cuts may be premature. In an attempt to curtail easing expectations, ECB President Lagarde said rate cuts were not discussed at all and policymakers mustn’t get complacent following the recent fall in inflation.