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Yield Drivers

US TSYS
  • Treasury 10Y yield climbed to new 16Y high of 4.861% amid heavy post data volumes (TYZ3>865k), curves steeper 2Y10Y taps -46.568 (mid-May high).
  • Tsys apparently followed EGBs lead as Bunds, Gilts and JGBs join the sovereign selloff, one desk notes. "Markets are either believing CBs higher for longer rhetoric or perhaps doubting the resolve to cause the pain needed to bring inflation down to target levels."
  • Still weaker, Tsys bouncing last couple minutes (TYZ3 107-17.5, -1) after Chicago Fed President Goolsbee headlines: "POSSIBLE TO CURB INFLATION W/OUT HAVING DEEP RECESSION .. CHINA SLOWDOWN, OIL PRICE, SHUTDOWN ARE OUTLOOK RISKS" Bbg.

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