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Holding Firm, Activity Set To Thin

US TSYS

T-Notes hold around their late Friday highs in early Asia-Pac dealing, trading +0-02+ at 136-30 at typing, with liquidity set to be sapped from the market on the back of the observance of the Martin Luther King holiday, which will result in a curtailed trading session for futures and no cash Tsy trade on Monday.

  • As a reminder, the space firmed on Friday, with the belly outperforming as the 7-10 Year sector richened by 4.5bp on the day.
  • Softer than expected retail sales data and continued questions around the likelihood of President-elect Biden's COVID support package passing as is supported the space for much of the session, despite some pullbacks, with activity dying down in the second half as participants took to the sidelines ahead of the elongated weekend.
  • Eurodollar futures unchanged to +1.0 through the reds, with some early lifts seen in the space (outlined in earlier bullet).
  • Chinese GDP data headlines the economic docket during Monday's Asia-Pac session.
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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