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T-Notes a touch lower to start the week,....>

US TSYS
US TSYS: T-Notes a touch lower to start the week, with the major weekend news
flow outlined in the previous bullet. Contract last deals -0-02+ at 139-01.
- T-Notes finished little changed on Friday, holding a tight range, with the
curve flattening at the margin. Local data releases drew little in the way of
reaction, with the same holding true for the Fed's latest announcement re: a
reduction in its Tsy purchases.
- Eurodollar futures trade +1.5 to -0.5 through the reds, with the front end
outperforming since settlement. As a reminder, Friday saw 3-Month LIBOR fix
~10bp lower, drawing a sharp reaction in 3-Month FRA/OIS, which has narrowed
into ~31bp as of typing.
- Focus in Asia is set to fall on the latest BoJ decision (see our preview for
deeper detail) and Chinese industrial profits. The latest FOMC decision, coupon
bearing Tsy issuance and month-end extensions are set to draw the bulk of focus
as we move through the week.
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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