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Wild Swings But 10Y Still Below 2%

US TSYS
  • Renewed risk-off moves on the intensification of Ukraine headlines has driven the curve back to new flats from earlier in the day, with 2s10s just 39bp, below a Aug-2020 low to technically to flattest since Apr-2020.
  • Markets have swung back and forth, especially on latest headlines that Zelenksy's comment about an attack on Wed were potentially sarcastic, but even so, with the US closing its Kyiv embassy in a move it recently said it wouldn't do, risk-off sentiment remains with Tsys off earlier highs.
  • 2YY are currently 3bps below earlier highs at 1.585% whilst 10YY are 4.5bps below at 1.982%.

USTs 2s10s spreadSource: Bloomberg


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