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T-Notes have ground higher in early.........>

US TSYS
US TSYS: T-Notes have ground higher in early dealing this week, edging closer to
settlement levels, as risk off flows surrounding U.S.-Saudi tensions, Brexit
matters and the Italian budget situation leant support.
- The cash curve has undergone some modest flattening, with the belly slightly
outperforming.
- Focus today will fall on U.S. retail sales data, which provides the highlight
of the U.S. economic data releases this week. Elsewhere the minutes from the
latest FOMC MonPol decision are due Wednesday, with Fedspeak from Daly,
Brainard, Bullard, Quarles, Bostic & Kaplan also due over the next 5 days. On
the issuance front the short-end dominates, ahead of the latest 30-Year TIPS
auction Thursday.
- The Eurodollar strip trades unchanged to 2.0 ticks lower in early dealing this
week, in what has been a limited session. The highlight of the overnight flow
was 0EM9 96.625/96.500/96.375 put ladder blocked at -0.005 on 3.0K, sources
suggest it was a buyer.
- T-Notes last 118.08+, U.S. 10-Year cash Tsy yields last 3.150%.
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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