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Looking Through Weekend News

US TSYS

T-Notes dealing -0-01+ at 136-31+ early on, despite some less than positive COVID developments over the weekend, with focus on the realisation/rumours of wider lockdown restrictions in Europe, which came on the back of broader vaccine supply issues for the EU on Friday. Elsewhere, Sino-U.S. tensions remain under scrutiny after Chinese military aircraft incursions into Taiwanese airspace over the weekend.

  • Friday saw T-Notes trade anchored around 137-00, which wasn't surprising given the large outstanding OI surrounding TYG1 137.00 options, with the caution evident as cash equities traded below unchanged levels for the entirety of Friday's session. Flow was dominated by steepener blocks (FV vs. US & TU vs. WN). Cash trade saw some flattening, with 30s going out ~2.5bp richer on the day.
  • Little of note to get us started on the Asia-Pac docket this week, with focus set to turn to end of month U.S. Tsy supply (which starts with 2s on Monday), ahead of Wednesday's FOMC decision.
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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