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USDCAD TECHS

Trend Conditions Remain Bullish

US TSY FUTURES

Extending Lows After the Close

US TSYS SUMMARY

Reversing Overnight Risk-Off Tone

AUDUSD TECHS

Remains Vulnerable

US

Pres Biden Budget Proposal Ests

EURJPY TECHS

Needle Still Points South

US SWAPS
US SWAPS: Spds running wider, rebound from Mon's narrowing. Two-way flow in 3s,
3s4s steepener. overnight repo saw three year notes, five year notes and ten
year notes all remain tighter. Latest spread levels:
* 2Y +1.25/23.25
* 5Y +0.25/7.62
* 10Y +0.06/-4.38
* 30Y +0.44/-34.81
Monday recap: Spds finish tighter, spd curve on session steeps w/long end coming
off narrows late. Short end extended tightening after 3Y auction tail, deal-tied
hedge/unwinds adding to move after earlier rate paying in 5s, 7s and 10s on
lighter size. Sources note more recent fund interest taking the other side of
recent narrowing (appr $500M nominal). Prop and fast$ accts have been waiting
for a pull back in spds that never arrived after last wk's heavy corp issuance
(appr $55B) while risk-off unwind adding to profits for accts able to hold onto
narrowers last week. OTC and exchange traded option vol lower across the curve,
better low delta put buying on day.
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com