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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

US TSYS SUMMARY
US TSYS SUMMARY: Implied vol rather subdued despite rates chopping higher after
weaker open. Latest surge higher on heavy futures volume (150k TYU from 120-07.5
to 120-13.5 over 5 min's)/US$ fell follows Pres Trump comments on CNBC: he's not
happy about interest rates going higher, and "CHINESE CURRENCY `DROPPING LIKE A
ROCK". Futures pare gains a few ticks, helping keep vol in check.  
- US$ index reversed: DXY -0.122 to 94.963 (95.652H/94.937L); US$/Yen falls -.64
to 112.22 (113.17H/112.06L); equities weaker (emini -7.5, 2808.5); gold rebounds
off lows (XAU -185, 1225.70); West Texas crude stronger (WTI +0.97, 69.73).
- First half rally/domino effect w/DAX leading initial sell-off in equities,
eminis following, spurred Tsy bid, tight stops triggered as fast$ and prop accts
+5s-7s, real$ bought 10s, insurance portfolio buying 30s cash and futures. Large
sale -30k EDU8/EDZ8 at 0.210 front end Eurodollar futures an unwind of buy from
Tue, recent front end duration weighted steepener Block +10,504 TUU vs. -8,950
FVU. West Texas crude strong bounce after Saudi headlines re: substantial
inventory drawdown. Tsy cash/ylds: 2Y 99-26.5 (2.589%), 5Y 99-15.25 (2.737%),
10Y 100-08 (2.844%), 30Y 102-04.5 (2.965%).
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com