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*** Rather disappointing trade so......>

US TSY FLOWS
US TSY FLOWS: *** Rather disappointing trade so far, anemic volume w/appr 350k
TYU since the open adding to 250k overnight. Mkt overreacted to data, "mainly
because wages didn't meet expectations, and the U/E rate nudged higher to above
4.00%," one trading desk said. Others posited algo related buying caused post
data spike (only picking up on the AHE figure). Take away the post-data gap high
and Tsys currently see-sawing off highs, traders eyeing the exits already to
finish up the 4th of July holiday week off floor. Note, just two weeks until the
Fed speaker blackout period resumes (July 21-Aug 2), rate hike NOT expected at
the Jul 31/Aug 1 FOMC meeting, rate hike chances at the September 25-26 FOMC
meet holding around 83.9%, December 18-19 FOMC chances of 4th hike at 45.4%
(MNI-PINCH model).

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