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AUSSIE 10-YEAR TECHS

(Z1) Off Lows, But Remains Weak

USDCAD TECHS

Still Vulnerable

AUDUSD TECHS

Bullish Price Sequence

US TSY/RECAP
US TSY/RECAP: Long end Tsys went out around late session lows, after 10-Year
yields marked a new cycle high of 3.0334%; the shorter end of the curve was
relatively stable, with the curve sitting steeper on the day as a result.
- Decent futures volume was noted (TYM>1.4M), with a chunky steepening position
blocked against a German flattener (+100.17k FVM 113-08.5 vs. -63.88k TYM
119-03; vs. Bund/Bobl flattener +29150 RXM8 at 157.81 vs. -65360 OEM8 at
130.61).
- Modest deal-tied flow was seen, with note-auction hedging ahead of 5-Year
supply also observed. The auction stopped through screens, with direct
acceptance ticking higher and a steady cover ratio.
- Option flow was rather bullish, in context, as accounts booked profits on puts
while opening long calls to fade the current sell-off.
- Focus on Thursday will fall on the ECB's MonPol decision, US Durable Goods
data and 7-Year Note supply.
- T-Notes last at 119.02+, 10-Year yield last at 3.026%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com