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US TSYS
US TSYS: Caution ahead of U.S. President Trump's Friday address re: China,
coupled with focus on larger than usual month-end extensions and bond positive
month-end rebalancing estimates supported the U.S. Tsy space in the final
Asia-Pac session of the month, leaving T-Notes +0-08+ at 138-29+, with yields
sitting 0.8-3.0bp richer across the curve, as 20s outperform.
- Fed's Daly offered little new in her latest address after continued discussion
of and speculation surrounding YCC in recent days.
- A reminder that the 5-/30-Year yield spread closed above 110bp for the first
time since '17 on Thursday, although the intraday wides of 2020 still haven't
been tested, yet.
- The latest 7-Year auction was quite similar to Wednesday's 5-Year offering,
generating a 0.9bp tail, with a nudge higher for dealer takedown.
- Eurodollar futures -0.5 to +1.0 through the reds, twist flattening.
- Focus falls on the aforementioned address from President Trump (no time
given), Fed Chair Powell's latest appearance, monthly PCE data, the MNI Chicago
PMI and the Fed's latest announcement re: Tsy purchase amounts.
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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