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Month-End Eyed

US TSYS

Core FI generally stuck to tight ranges in the Asia-Pac session, with sizeable month-end extensions/Tsy +ve rebalancing flows, a downtick in e-minis (after an initial move higher) and soft crude oil prices providing some cover vs. stronger than expected official PMI readings out of China. That leaves T-Notes +0-00+ at 138-06+, with the contract holding within a 0-03 range. Yields are marginally mixed across the curve, with light volumes observed across the space.

  • As a reminder, the same sizeable U.S. Tsy month-end duration extension/rebalancing estimates came to the fore in a holiday thinned/shortened Friday trading session, allowing 30s to richen by over 5.0bp come the bell amid bull flattening of the curve.
  • Chicago PMI data headlines the local docket on Monday, with Fedspeak from Barkin also due.
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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