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USDCAD TECHS

Watching The 50-Day EMA

AUDUSD TECHS

Bearish Focus

MONTH-END EXTENSIONS

Updated Barclays/Bbg Extension Estimates for US

US TSYS

Late Session Selling

US SWAPS
US SWAPS: ### POV, Short end spds extend tighter, 2Y dragging 5Y tighter after
3Y auction tail, deal-tied hedge/unwinds adding to move after earlier rate
paying in 5s, 7s and 10s on lighter size. Sources note more recent fund interest
taking the other side of recent narrowing (appr $500M nominal). Prop and fast$
accts have been waiting for a pull back in spds that never arrived after last
wk's heavy corp issuance (appr $55B) while risk-off unwind adding to profits for
accts able to hold onto narrowers last week. With corp supply book-ending the
week's Tsy supply, as long as last week's risk metrics don't return, looks like
a tactical narrowers have a good opportunity to turn a profit this week. Latest
spread levels:
* 2Y -1.81/22.00
* 5Y -0.94/7.25
* 10Y -0.83/-4.81
* 30Y -1.23/-35.75
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com