Treasuries bear steepened over early U.S. session

The U.S. House of Representatives impeached Donald Trump for abuse of power Wednesday, marking only the third time in U.S. history that lawmakers invoked the ultimate constitutional sanction of a president. The House voted 230 to 197 largely along party lines to adopt the first of two impeachment articles, alleging he misused the power of his office to withhold military assistance and pressure Ukraine to investigate a potential rival in the 2020 presidential election, Joe Biden. Lawmakers immediately turned to vote on a second article that charges him with obstructing Congress’s investigation by directing executive branch officials to defy subpoenas and not produce documents and witnesses sought by committees.

Treasuries bear steepened over early U.S. session and broadly held losses over a more muted U.S. afternoon; early downside was triggered by large block sale in 10-year futures, which pushed yields above 1.90% and steepened the 2s10s curve. Flurry of options activity added to bearish sentiment as large upside positions appeared to be closed-out and adjusted.


Source: Danareksa Sekuritas Debt Research
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