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Reversing Overnight Gains

US TSY FUTURES
  • Treasury futures have reversed the modest overnight bid in the last few minutes, mildly in the red for the most part, 2s holding slight bid following block sale of 2,500 at 103-12.75 (103-12 last, +0.125).
  • Despite London close for bank holiday, heavier volumes so far (TYU4>507k) are driven by Sep/Dec rolls, not any particular headline driver for the reversal. Curves a little steeper: 2s10s +1.243 at -10.599, 5s30s +1.358 at 40.409.
  • Cross asset roundup: US$ index hear steady (+.085 at 100.803), crudes trading higher (WTI +2.0 at 76.83) on Libya announcing force majeure recently, not to mention mid-East tension following after Israel bombed target in Lebanon.

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