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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

BOND SUMMARY
BOND SUMMARY: A fairly quiet opening to the week, with bonds and rates under
moderate pressure amid thin trading volumes.
- Deutsche Bank announced above-consensus Q2 earnings, which has bolstered risk
appetite and pushed Bunds lower - Sep18 Bund future off 24 ticks at 162.74.
- Gilts opened weaker and remain under a bit of pressure with the curve slightly
flatter, as markets shrug off more headlines pointing to Brexit-related risks to
the May government. 2Yr yields up 1.3bps at 0.754%, 10Yr up 1.1bps at 1.284%.
- Italian spreads are a bit tighter to Bunds despite EU Minister Savona`s
published interview suggesting that Brussels should allow additional fiscal
spending and that the ECB should be the `lender of last resort` for the EMU. 2Yr
BTP yields down 3.3bps at 1.666%, 4.0bps tighter to Bunds at 127.8bps.
- US Tsys on the back foot, 10-yr yield up 1.3bps at 2.840%. Q&A segment of Fed
Chair Powell's semi-annual report to Congress is the week`s main event.
- US and EMU rate futures are weaker across the strip: Euribor Red through Blue
contracts 1.0-1.5 ticks down, Eurodollars off 1.5 ticks. Short Sterling bucking
the trend, up 1.0-1.5 ticks out to Dec20, and down 0.5-1.0 ticks further out.