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Holding Lower

US TSYS

TYZ1 has settled into a range a little off of its early lows, but still holding below the previously outlined region of clustered support (130-25+), last printing -0-06+ at 130-24+. Consolidation below the aforementioned breached support would switch technical focus to 130-07, a projection from the Aug 4-11-17 price swing. Early cash trade has seen the major benchmarks cheapen by 1.5-2.0bp, with the belly leading the weakness once again. The initial impulse from the regional reaction to Friday's NY moves and NZ CPI data, as well as the previously flagged weekend comments from BoE Governor Bailey, has waned a little, allowing markets to calm in recent dealing. China GDP data (due in ~90 minutes) will provide the next key reference point for markets.

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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