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T-Notes had a look at their Thursday lows...>

US TSYS: T-Notes had a look at their Thursday lows at the re-open, on the back
of confirmation that the U.S. Tsy will issue 20-Year bonds in H120, following
input from market participants. The Tsy will release further details on Feb 05.
Elsewhere, U.S. President Trump formally nominated Shelton & Waller for seats on
the board of the Federal Reserve, as expected. Contract last -0-02 at 129-03,
just off early lows.
- To recap Thursday's price action, strong retail sales data (although back
month revisions took the shine off the print) and a strong headline Philly Fed
survey print allowed the space to erase early gains, with the belly of the curve
underperforming at the margin.
- Corporate issuance also continued to weigh on the space.
- Flow-wise, sources reported better fast and real money selling on the
data-inspired move, with prop buying in the intermediates showing up after,
before a fresh round of longer duration selling crept in. A TU/FV steepener
block also showed up. Profit taking in TYG0 129/130 call spds and fresh long
TYG0 128.5/129 put spds were also seen on screen.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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