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Rates Spark: Issuance pressure remains a thing too
The US re-funding announcement should see a repeat play of the current quarter. No increase, but also no let up in the supply pressure. The US third quarter GDP number should also show a firm reading for that quarter. That maintains the upward pressure for yields ahead of the US elections. In the UK, it’s budget day; with higher Gilt issuance to boot. Three big data hitters ahead over consecutive days, and then the election: Quite some volatility around some wild data releases characterised Tuesday's price action, with the net effect seeing the US 10yr hold in the 4.3% area (having topped out just short of 4.34%). ... (full story)