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T-Notes & cash Tsys finally react to the....>

US TSYS
US TSYS: T-Notes & cash Tsys finally react to the broader risk off flows over
the last half hour or so, the move started with U.S. equity index futures at the
re-open (with vol dampening measures enacted) after news hit that a Huawei
executive was detained in Canada owing to breaches of Iranian sanctions, with
the U.S. seeking her extradition. T-Notes still shy of Tuesday's session high.
Cash curve running flatter after yesterday's market closure, with inversion in
the shorter end still in play.
- Out of the money call buying noted in Tsys, with the TYF9 122.00 & 123.50
calls in play.
- Front end of the Eurodollar strip coming under some modest pressure following
yesterday's closure. As a reminder 3-Month USD LIBOR set ~2.7bp higher
Wednesday. EDM9 out through the golds trading higher by 1.0 to 3.0 ticks.
- T-Notes last 120.04+, U.S. 10-Year cash Tsy yields last at 2.905%.
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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