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Futures Lower, China’s Refinement Of COVID Restrictions Applies Light Pressure Into London

US TSYS

Tsy futures operate around session lows as we move into London hours, with news re: the implementation of China’s optimised COVID restrictions (which include a rollback of the country’s international travel restrictions and reduced quarantine time for international travellers) applying some light pressure late in Asia-Pac dealing. A reminder that such adjustments had been flagged via news wire source reports in recent days.

  • E-minis have extended to fresh session highs, breaching their respective Thursday peaks, in the wake of the news, while USD/CNH has pulled lower.
  • The rally in Asia-Pac equities had already knocked U.S. Tsy futures away from best levels before the news out of China crossed.
  • Previous headline flow flagging a multi-month high for new COVID cases in China had little impact on the day.
  • TYZ2 is -0-07+ at 112-09, 0-01 off the base of its 0-10 range on volume of ~94K.
  • Cash Tsys are closed on Friday owing to the observance of the Veterans Day holiday.
  • Looking ahead, Friday’s docket will be headlined by the latest UoM sentiment survey, with the inflation expectations components generating the most interest when it comes to that release.
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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