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Off Recent Highs

US TSY FUTURES
Tsys have scaled back recent gains to mildly higher, modest volumes (TYZ<200k). Rates had initially extended highs after UK PM Johnson comments on Brexit, had quickly reversed when mkts digested impact of Canada vs. Australia type deals (see 0721ET bullet). In effect, not walking away from negotiations but want change in EU approach. Equities holding modest gains (ESZ0 +10.0) on the back of drug maker Pfizer headlines over potential vaccine.
  • Overnight flow included bank portfolio selling in 5s-10s, swap-tied selling in 10s, two-way in intermediates to long end w/prop and real$ selling into program bid. Eurodollar Blocks: +20k EDM1 99.805 after decent selling, +20k Red Dec'21/Green Dec'22 0.085.

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