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### POV, WHEN DOES...............>

US EURODLR OPTIONS
US EURODLR OPTIONS: ### POV, WHEN DOES RATES/EQUITY NEGATIVE CORRELATION BREAK
DOWN?
At the end of the Fed cycle/beginning of new? Anecdotal comments in addition to
the 1006ET POV: JUNE IS LIVE bullet.
* Short end rates well supported as they price in increasing chances of a rate
cut as early as the next FOMC on June 18-19. Meanwhile, equities well bid are
liking the thought of rate cuts as well.
* Despite the jump in June cut %, latest trade does NOT indicate too many
punters taking a shot at hedging for the move -- tough trade with a lot of risk:
need to see Friday's employment report for further confirmation of today's
weaker data, while the Fed go into blackout this Saturday.
* Flow this week remains much better upside buying starting in September through
early next year.

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