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Looking Through Vaccine Headlines

US TSYS

T-Notes tight in early trade this week, last dealing unchanged at 139-19, with the contract a lot less reactive to weekend news flow when compared to e-minis (the latest round of positive musings re: COVID-19 vaccines, albeit with little in the way of concrete developments), with e-minis seeing further support on M&A activity, while participants in that particular space are perhaps more susceptible to swings in optimism re: COVID vaccine dynamics.

  • This comes after headwinds for equity markets during parts of Friday's session and Fed Tsy purchases supported the space on Friday, outweighing stronger than expected domestic CPI data.
  • The fiscal situation on the Hill in DC seemingly remains gridlocked.
  • Eurodollar futures run unchanged to 0.5 lower through the reds.
  • Little in the way of tier 1 headline risk events slated for the Asia-Pac session, so focus likely to fall on broader headline and market flow.
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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