US yields extend their rise

US 2-year notes are up 0.72%, 5.5 bp firmer on the day.

10-year notes are at 3.54%, the highest since mid-December.

Spreads between Treasuries and bunds are widening in favor of Treasuries. US paper now yields 30 bp more than comparable German 10-yr paper, up from 15 bp last Friday.

EUR/USD is finding central bank buying on dips but we are getting reports of stop-loss sell orders building below 1.3650.

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