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Reversing late Friday rally

BONDS
  • The European morning session has seen the rally of Friday night reversed with Eurodollar and Treasury futures both lower in early trading, albeit in light liquidity with both Japanese and UK markets closed.
  • The German curve has moved around 4bp in a largely parallel fashion.
  • Focus is looking ahead to this week's central bank activity with the Fed on Wednesday, BOJ and BOE on Thursday among the highlights.
  • TY1 futures are down -0-10+ today at 114-13+ with 10y UST yields up 0.1bp at 3.453% and 2y yields up 0.1bp at 3.871%.
  • Bund futures are down -0.26 today at 142.47 with 10y Bund yields up 3.9bp at 1.793% and Schatz yields up 4.1bp at 1.557%.

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