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Chinese COVID Vs. Hawkish RBNZ In Limited Futures Trae, Cash Closed Until London

US TSYS

Tsy futures have held tight ranges in Asia-Pac hours, with liquidity limited by the observance of a Japanese holiday, which also means that cash Tsys are closed until London hours.

  • The early bid linked to regional reaction to Tuesday’s price action and continued COVID worry re: China (deeper restrictions in some of the country’s major cities) faded in the wake of the latest RBNZ decision, which came down on the hawkish side.
  • News flow was limited elsewhere
  • That leaves TYZ2 -0-01 at 112-18+, operating in a narrow 0-05+ range, on sub-standard volume of ~60K (which is even more restricted when you consider that ~22K lots of that came from quarterly roll activity).
  • Looking ahead, the minutes from the latest FOMC decision headline the pre-Thanksgiving NY docket. We will also get flash PMI data, durable goods, new home sales, MBA mortgage applications, weekly jobless claims and the final UoM survey for Nov.
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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