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A Tight Re-Open

US TSYS

T-Notes operate around Friday's late NY levels, last dealing -0-02 at 132-10, after a late tick away from the day's lows at the end of last week.

  • As a reminder, the cash Tsy curve twist flattened on Friday, with 20s and 30s richening at the margins (by ~1.5bp & ~0.5bp respectively) come the bell. The outperformance for the 20-Year space perhaps came on the back of incremental support as the latest quarterly Treasury survey of dealers saw the dep't seek comments re: the demand & trading performance of 20s (a year after the reintroduction of auctions of the tenor). Elsewhere, the Treasury asked dealers for their views on how a potential reinstatement of the federal debt limit on July 31 will affect the Tsy market & supply of bills.
  • Bank of America rounded off the week's financial supply, coming to market with a record (for bank issuance) $15bn in paper, which would have provided some hedging-related support for the Tsy space.
  • There is a lack of tier 1 headline risk evident on Monday's regional Asia-Pac docket, with participants currently assessing weekend news flow, which seemed to centre on slight easings of Iranian related tensions & continued angst re: the geopolitical issues centring on Russia.
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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