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Bear Flattening After Long Weekend, Gilts & ISM Services Eyed

US TSYS

TYZ2 deals at worst levels of Asia trade, -0-11+ at 116-09+, while cash Tsys run 3-7bp cheaper across the curve.

  • Cash Tsys have bear flattened after the Labor Day weekend, initially taking impetus from the general direction of travel in global FI markets on Monday, before being further aided by press outlets flagging the potential for a much larger than expected fiscal support package out of the UK re: energy prices.
  • A pullback in ACGBs from best levels in the wake of the latest RBA decision has allowed a fresh round of cheapening to kick in ahead of London hours, after Tsy futures initially moved away from Monday’s lows in early Asia dealing, seemingly aided by USD weakness.
  • ISM services data headlines the domestic docket on Tuesday, with the Gilt market reaction to the aforementioned press reports re: potential UK fiscal support set to provide direction in pre-NY dealing.
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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