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Late Session Tsy Flow

US TSY FLOWS

Calm Before the FOMC, or the calm before calm after
Wed's FOMC policy announcement? Many summer
traders say the latter with no change expected from the
Fed until September at the earliest. Early knock-on bid
for Tsys as they followed German Bunds higher in the
first half on renewed safe-haven buying on virus concerns
weighing on economy, quarantine fears. Futures surged
again, made new session highs after strong 7Y auction
stopped 4bps through (0.446% award rate vs. 0.450%
WI) while yld curves continued to flatten out. The 2Y yld
-1.3bps at 0.1387%, 5Y -2.3bps at 0.2626%, 10Y -3.9bps
at 0.5757%, and 30Y -4.1bps at 1.2193%.

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