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A quiet re-open for futures. T-Note.........>

US TSYS
US TSYS: A quiet re-open for futures. T-Note volume was limited on Monday, with
the contract subjected to shortened trading hours, with cash markets closed
owing to the Memorial Day holiday. This resulted in a tight range being
observed. T-Notes last 125-01+.
- After edging lower during Asia-Pac hours, comments from U.S. Pres. Trump re:
"not ready to make a deal with China," helped put a bottom on the space in early
European trade. The move higher extended on jitters surrounding Italy in the
wake of the EU elections. Deputy PM Salvini struck an aggressive tone re: tax
cuts & opposing austerity, before BBG sources suggested that "the EC is
considering proposing a disciplinary procedure for Italy next week over its
failure to rein in debt, which could pave the way for a 3.5 billion-euro
penalty." Salvini's reply, if the EU sends a letter then the government will
reply by saying that Europe's era of uncertainty & unemployment is over.
- The contract closed just off best levels.
- The markets will have to digest 2- & 5-Year supply on Tuesday. Domestic data
is mostly second tier.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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