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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

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  • Following a mixed showing from the 2yr, 5yr auctions Monday, attention turns to the 7yr line on tap in just over an hour's time.
  • BMO flag that the sell-off in Treasuries since last week's Fed has built in a solid concession ahead of today's sale, which could benefit the 7yr to a greater degree than yesterday's 5yr auction given their more compelling relative value.
  • Nonetheless, they also flag that markets could be hesitant at auction given Monday/Tuesday volatility and as such, they project either further weakness into the bidding deadline or a small tail in the results.

Historical averages:

  • Bid/cover: 2.31
  • Directs awarded: 19.8%
  • Indirects awarded: 58.9%
  • Dealer takedown: 21.3%