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Waiting for the US: Retrace or continue yesterday's UST moves?

BOND SUMMARY
  • Core fixed income has again been partially reversed yesterday's moves. This has marked a range-bound week for Bunds with gilts and Treasuries a little higher on the week so far.
  • It's a pretty light day on the calendar with Michigan confidence, housing data and a speech from Kaplan the highlights. Markets will be watching closely to see the reaction in the Treasury market as the US starts to get in after yesterday's rally and the partial retracement overnight.
  • TY1 futures are down -0-10 today at 132-11 with 10y UST yields up 0.1bp at 1.579% and 2y yields up 0.1bp at 0.162%.
  • Bund futures are down -0.38 today at 170.95 with 10y Bund yields up 2.2bp at -0.270% and Schatz yields up 0.5bp at -0.699%.
  • Gilt futures are down -0.41 today at 128.41 with 10y yields up 3.0bp at 0.766% and 2y yields up 1.0bp at 0.043%.

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