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Short-Lived React to ECB Lane on New Policy Shift in September

US TSY FUTURES
Tsys back to drifting off lows following initial dip on ECB Lane comments:
"Our upcoming September monetary policy meeting will be the start of a new phase... In terms of execution, this new phase will consist of a meeting-by-meeting (MBM) approach to setting interest rates... As policy rates move away from the lower bound, the inherent flexibility of the MBM approach is better suited to calibrating monetary policy in a highly uncertain environment."
  • Rebound apparently on follow-up comment over smaller hikes "make it easier to correct course."
  • Tsy 30Y bonds back near middle overnight range, 30YY 3.2306 +.0386 vs. 3.2576% late overnight high.

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