MNI China Daily Summary: Thursday, June 27

MNI BRIEF: China EU In Close Communication - MOFCOM

MNI BRIEF: China To Hold Key Third Plenum On July 15-18

MNI Brief: China Third Plenum To Deepen Reforms

MNI: PBOC Net Injects CNY80 Bln Via OMO Thurs; Rates Unchanged

Inflation Accelerates in June

Services Expected Prices Remain At Elevated Levels

Thedeen Does Not Commit To Cut In August, Depends on Data

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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### POV, UNWINDING THE FADE AND......>

US TSY FUTURES
US TSY FUTURES: ### POV, UNWINDING THE FADE AND TAKING LOSSES
- Deep background on day's modest put condor sale: -20k Dec 71/72/73/75 put
condors, 0.75, adds to sale of some 17.5k at 1.0 on June 7. Could be just tip of
the iceberg if macro fund decides to unwind fully. Back in late March the fund
were Heavy buyers, fading a rate rally that started to imply a 50bps rate cut by
year end (MNIs PINCH model at time had probability of 25bp cut at 122%).
- The acct bought over +200,000 Dec 71/72/73/75 put condors from 3.5-5.5 (others
+10k short Jul 81/83/86/88 put condors at 4.5; +20k Jul 76/77/78/80 put condors,
2.75; +60k short Dec 86/88 call spds, 3.5).
- Fast forward: current mkt pricing in chances of three 25bp cuts by yr end
w/carry over to 2020 amid persistent global growth concerns exacerbated by US
tariffs. Fading rate cuts does not look like a winning proposition. Acct
starting to take off the position while they can still extract some premium to
soften the blow.
- Upside call buy theme: Current trade favors buying Mar'20 90/92 call spds and
par calls in Reds (EDU0-EDM1).
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