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Yield Gyrations Prompting Unwind of USD Strength

USD
  • Allied with the US curve move off the steeper levels of the session (some citing the publicity around Bill Ackman closing his bond short), the USD is weakening and helping trigger fresh daily highs across EUR/USD, AUD/USD and GBP/USD in recent trade.
  • My colleague notes buying/short covering pushing total TYZ3 volumes to over 925k - activity that's mirrored in currency futures, with EUR, GBP and JPY futures all now seeing better-than-average volumes for this time of day.
  • Equities also benefiting from the relief in yields, as the e-mini S&P narrows the gap with overnight highs of 4261.50.

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