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US Treasuries are trading lower,....>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries are trading lower, curve bear steepening weighed
by risk-on sentiment ahead of US open Thursday. 10-yr Tsy yield is 2bp higher at
2.992%, close to a 2-week high, while 2-yr is only 0.8bp higher at 2.524%.
- Tsys edged higher through the latter part of the Asian session with the space
seemingly driven by USDJPY's moves after the pair failed to make a clean break
above its 21-DMA.
- Once European markets opened though risk-on sentiment rose up a notch and Tsy
slipped lower in-line with sharp fall in German Bunds. Sources reported decent
selling with around 12k TYU8 contracts being sold on screen on move from
119-08+/07. TYU8 now at lows of day at 119-04.
- Eurodollar futures are under pressure with the curve bear steepening as blue
contracts fall by 2.5 to 3 ticks, compared to 0.5 to 1 tick fall in whites.
- Swap spreads are mixed with the 2-yr touch wider while the 30-yr is slightly
tighter. Breakevens are little changed. 

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