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Ltd trade for Tsys overnight as Chinese.....>

US TSYS
US TSYS: Ltd trade for Tsys overnight as Chinese holidays sapped liquidity from
the Asia timezone. T-Notes +0-01 at 129-15, while yields are 0.3-1.8bp higher
across the curve at writing. Selling of the TYV9 129.00 puts provided the
highlight on the flow side, but the move seems to have retraced. Elsewhere it
looked like ~5.3K of the TYX9 131.00/131.50/132.00 call tree was rolled into the
corresponding Z9 strikes.
- Trump's discussions of middle-class tax cuts over the next year or so, the
potential for a meeting with N Korean leader Kim & a reaffirmation of his
preference for a "full" deal with China, but the opening of the potential for an
"interim" deal, or at least the consideration of one, did little for market.
- Also worth reiterating that Tsy Sec Mnuchin flagged to potential for 50-Year
bond issuance, if demand allows, for the second time in less than 12 hours.
- Eurodollar futures 0.5 tick lower to 1.0 tick higher through the reds.
- Elsewhere, the latest 30-Year auction saw a 1.6bp tail, steady cover ratio and
pretty stable take down metrics.
- Retail sales & UoM sentiment provide the highlights of Friday's U.S. calendar.
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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