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Flat Re-Open

US TSYS

T-Notes hovering around late NY levels in early Asia-Pac trade, last -0-06 at 130-22. If anything, there is some very modest selling pressure, with e-minis ticking higher.

  • To recap, Friday saw 2- to 5-Year paper fully unwind the early richening linked to a widening COVID lockdowns in Europe, with commentary from Fed Vice Chair Clarida & Governor Waller re: the potential for a more aggressive tapering move from the Fed facilitating that dynamic. This promoted twist flattening of the curve, with 30s going out just off of intraday richest levels as equity markets nudged lower (excluding the NASDAQ, which benefitted from lower yields). Futures roll activity also aided volume.
  • Monday's Asia-Pac docket is limited at best, while NY hours will be headlined by existing home sales data, in addition to 2- & 5-Year Tsy supply (with issuance frontloaded owing to the upcoming Thanksgiving holiday).
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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