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BTP

Decent cash seller

SILVER TECHS

Bear Flag

USD

Mostly in the red against G10s

JPY

J.P.Morgan: De-Risking Dominates

US TSYS
US TSYS: T-Notes hover around week-to-date highs in early Asia-Pac dealing,
after a sense of worry became more pronounced in NY trade. Contract last +0-02
at 138-30. Key points of tension on Wednesday included continued/heightened
COVID-19 worry in the U.S., perhaps best punctuated by Houston grinding towards
its ICU capacity, as well as New York, New Jersey & Connecticut outlining a
quarantine for travellers out of virus hotspot states, U.S/EU trade matters
(stemming from long running disputes surrounding Airbus) and Sino-U.S. sabre
rattling (which has continued to develop since the re-open). Month-/quarter-end
rebalancing and pullback in oil markets may have also supported the move
further. Curve bull flattened Wednesday, although the Tsy space remains in
broadly familiar territory.
- The latest 5-Year auction stopped through WI by 0.6bp, as the cover ratio
topped recent avgs, and dealer participation pared back below recent avgs, as
both direct and indirect participation picked up.
- Chinese & Hong Kong holidays will thin out liquidity during Asian hours, with
eyes on broader headline flow given the thin docket.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com