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Futures Firmer But Off Best Levels

US TSYS

The bid in Bunds provides some modest spill over support for Tsys, but TY futures remain some way shy of their early Asia-Pac highs. Contract last +0-12 at 107-07 on above avg. volume of ~223K lots.

  • Initial resistance at the Oct 3 high (107-14) was breached overnight, before the correction from best levels took place.
  • A reminder that cash Tsys are closed today, owing to the observance of the Columbus Day holiday.
  • Weekend events in Israel resulted in safe haven demand in Asia-Pac hours, outweighing the spill over impact of the related bid in crude oil.
  • German industrial production data then provided the latest round of soft European economic readings.
  • Asia-Pac flow was headlined by block buying in FV futures (cumulative +4,904/DV01 ~$204K, over 2 clips)
  • Familiar hawkish tones were deployed by Fed Governor Bowman over the weekend, but she failed to move the needle, reiterating her own exp. re: the need for further policy tightening.
  • Fedspeak from Jefferson, Barr & Logan headlines the domestic docket today.
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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