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Shaking Off The 20-Year Auction

US TSYS

T-Notes a little shy of their late NY highs, last +0-00+ at 136-31+.

  • The space reversed the early cheapening, firming into the bell, with cash Tsys richening by under 1.0bp across the curve, while the S&P 500 tagged fresh all-time highs as markets welcomed the inauguration of President Biden, although some members of Biden's team sounded cautious re: the COVID outlook.
  • Some light pressure did creep into the space around the latest 20-Year Tsy auction, which saw a 1.4bp tail, while the cover ratio softened to below average levels and dealer takedown held steady, just above the recent averages.
  • Focus in Asia-Pac hours will fall on the Australian labour market report and latest BOJ decisions, with the latter expected to be a placeholder affair ahead of the Bank's monetary policy review.
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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