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Holding Tight Ahead Of FOMC

US TSYS

Tsys showed nothing in the way of a meaningful reaction to the latest round of positive fiscal rhetoric out of DC, with Congressional leaders set to reconvene on Wednesday morning. T-Notes last +0-03+ at 137-31, while cash Tsys run little changed across the curve as we come to the end of what has been a limited pre-FOMC Asia-Pac session. 30K worth of TYF1 139.00 call block flow has provided the highlight thus far, with the trade looking like short cover.

  • As a reminder, the curve finished a touch steeper on Tuesday, with 30s cheapening by a little over 2.0bp on the back of the mood music re: Brexit, COVID-19 vaccine positives and some support seemingly gathering behind a slimmed down fiscal support package in DC. Markets looked through local data releases.
  • The final FOMC decision of '20 headlines on Wednesday (see our full preview for further details), with retail sales and flash PMI readings also due.
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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