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CROSS ASSET: A broader base bid in Bonds

CROSS ASSET
  • Bonds are seeing a broader bid since the UK Data, but likely some cover and squaring is also at play following the US and UK Data misses this Week.
  • Moves have been so overstretched that some Desks are likely taking some of their positioning off the table as we end the Week.
  • The Dollar is still fairly mixed and is still holding onto gains versus G10s, the EURUSD still trades around the 1.0300 handle and note that there is 3.98bn worth of Option Expiry for today at 1.0300, which given the lack of Data for the rest of the session, may act as a magnet.
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  • Bonds are seeing a broader bid since the UK Data, but likely some cover and squaring is also at play following the US and UK Data misses this Week.
  • Moves have been so overstretched that some Desks are likely taking some of their positioning off the table as we end the Week.
  • The Dollar is still fairly mixed and is still holding onto gains versus G10s, the EURUSD still trades around the 1.0300 handle and note that there is 3.98bn worth of Option Expiry for today at 1.0300, which given the lack of Data for the rest of the session, may act as a magnet.