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Speculation surrounding & the ultimate......>

US TSYS: Speculation surrounding & the ultimate level of the USD/CNY fix from
the PBoC, which came in a whisker below CNY7.00, supported global core FI in
Asia-Pac hours. A deeper than exp. cut from the RBNZ & rhetoric surrounding the
work pertaining to extraordinary MonPol measures leant further support, which
allowed T-Notes to register fresh highs. T-Notes last deal +0-14 at 130-06+,
with the yield curve a touch flatter as the long end modestly outperforms.
- Decent buying of USU9 164.00 and 164.50 calls was flagged in early Asia trade.
Eurodollar futures deal 2.0-5.5 ticks higher through the reds.
- Eurodollar futures deal 2.0-5.5 ticks higher through the reds.
- Fed's Evans headlines the docket on Wednesday, with 10-Year supply also due.
Evan's appearance comes in the wake of fellow 2019 Fed voter & dove Bullard
helping to cool the odds of a 50bp rate cut in Sep, pointing to data dependence
& a desire to wait & see how last month's rate cut feeds through. Bullard also
noted that the Fed shouldn't react to every tit for tat move in the Sino-U.S.
trade spat & reiterated his support for 1 more 25bp rate cut by end '19.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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