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US Tsys are trading mixed from......>

US TSYS SUMMARY
US TSYS SUMMARY: US Tsys are trading mixed from Thursday's close with the yield
curve steepening as long-end seen weighed the most with a possible US government
shutdown the most likely driver of markets so far this morning. 10-yr Tsy yield
is little changed at 2.6259% after hitting high of 2.6407%.
- Overnight in Asia, 10-yr Tsy yield broke above March 2017 highs and touched a
high of 2.633%, which sparked a mild technical sell-off. Despite this move
traders reported a much quieter market in Asia compared to Thursday with the
market rallying a touch off it's lows.
- The start of European session though started a fresh sell-off in US Tsy which
led the yield on the 10-yr Note to reach 2.6407% the highest level since Sep
2014 as market worried about possible US government shutdown.
- Yields pared gains taking cue from recovery in UK Gilts which were likely
underpinned by large Gilt block of over 5k contracts, and probably on the back
of some bargain hunting in Us Tsys.
- US Breakevens are little changed while swap spreads are modestly wider.

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