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Stocks and Rates Near Session Highs Late

US TSYS SUMMARY
Early post-data chop resolved quickly, rates finishing near session highs while equities remained strong in late trade (ESM1 +65.0 at 4172.0). Bounce in equities said to weigh on US$.
  • Tsys traded lower on mixed data: retail sales weaker than expected, import prices little higher) but quickly rebounded back to opening levels/top end of range soon after.
  • Moderate volumes in Tsy futures by the close (TYM1 1.45M), flow largely two-way positioning from fast$, prop and option acct hedging, no deal tied flow but some light steepener resets after curves bull flattened earlier. Yld curves finished session near lows w/5s30s appr 3.4bp flatter at 153.32.
  • After slow start for data next week, focus on Apr FOMC minutes on Wednesday.
  • The 2-Yr yield is down 0.4bps at 0.149%, 5-Yr is down 0.8bps at 0.8193%, 10-Yr is down 1.9bps at 1.6386%, and 30-Yr is down 4.2bps at 2.3538%.

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