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Carry-over risk-off/safe haven......>

US TSYS SUMMARY
US TSYS SUMMARY: Carry-over risk-off/safe haven bid for Tsys amid ongoing trade
angst after U.S. Pres Trump tweeted threat of "more than Reciprocity" Sunday
against countries w/trade barriers/tariffs against US. Early gains also
coincided w/drop in US$/Yen as did heavy selling in equities.
- Continued chop for US$ index (DXY -.173 to 94.347 last vs. 94.698H; US$/Yen
-0.50 to 109.47 vs. 110.04H); equities sharply lower (emini -46.0, 2713.5,
2703.75L); gold weaker (XAU -3.28, 1266.13); West Texas crude little weaker
after blowing past 50DMA Fri (WTI -0.32, 68.26).
- Moderate volume, thin mkts exacerbated moves, implied option vol climbed into
midday (VIX up nearly 5.0 at one point). Decent option-tied buying in futures,
two-way positioning ahead Fri's PCE. Swap spds tighter, better front end
receiving first half, spds pared move into midday amid pre-auction short setting
ahead Tue' $34.000B 2Y auction (JUL 02) settle. Early futures block: +11,250 FVU
113-14.75, buy through -14.25 post time offer vs. -10,000 TNU (10Y-ultra),
127-25.5. Tsy cash/ylds: 2Y 99-30 (2.529%), 5Y 100-00.75 (2.743%), 10Y 99-31.5
(2.873%), 30Y 101-30 (3.024%).

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