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​Bonds Bounce as Global Equities Falter

US TSYS SUMMARY
Tsys trading marginally mixed, drop in equities to recent overnight lows (ESM1 -18.0) a tailwind for 30Y bonds as they climb off lows over last hour. SPUs following weaker global stocks: Estoxx as the index fell blow Friday's lows, Japan's NIKKEI settled down a whopping 584.99 pts or -1.97% at 29100.38.
  • USD bouncing off lows, VIX vol index on highs +1.30 around 18.60.
  • Moderate volumes (TYM1 near 350k) on another day without significant US data or Fed speakers, the latter in media blackout until April 29. Focus turns to Bank of Canada and ECB monetary policy rate announcements on Wednesday and Thursday respectively.
  • Incoming corporate issuance remains strong, banks still helping drive hedging volumes there.
  • US Tsy supply: $40B 42D and $34B 52W bill auctions; NY Fed buy-operation: Tsy 20Y-30Y, appr $1.750B.
  • The 2-Yr yield is unchanged at 0.1572%, 5-Yr is down 0.2bps at 0.8276%, 10-Yr is down 0.7bps at 1.5977%, and 30-Yr is down 0.6bps at 2.2902%.

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