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Richer Overnight

US TSYS

Continued worry surrounding the COVID situation in China (another city went into a 3-day lockdown on the discovery of 1 case, while fears surrounding a Shanghai lockdown remained evident, with 3 COVID cases detected outside of quarantine) allowed Tsys to rally overnight, with weakness in e-minis and Chinese stocks noted.

  • TYU2 showed through its Monday & Friday highs, although there was a lack of notable upside extension beyond that, with gains pared back into London hours. The contract last deals +0-05 at 118-17, 0-07 off of the peak of its 0-14+ range, operating on solid volume of ~115K. Cash Tsys run 1.5-3.5bp richer across the curve, with bull steepening in play.
  • Asia-Pac flow was dominated by a couple of bloc buys in TY futures (+1.5K & +2.3K).
  • Tuesday’s NY docket will provide the latest NFIB small business optimism reading, along with Fedspeak from Barkin (’24 voter) & 10-Year Tsy supply. A quick reminder that Wednesday will bring the CPI reading for June, with the Biden administration already warning of “highly elevated” readings, noting the prints will not reflect the recent lowering of gas prices
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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