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T-Notes working lower in early Asia trade...>

US TSYS
US TSYS: T-Notes working lower in early Asia trade after going at just above
worst levels Weds, despite the broader risk-off news flow, as the curve
steepened, extending on late pressure in the long end. Contact -0-17+ at 136-27.
Various suggestions for the pullback Wednesday, despite the heavy tone in
equities, with people pointing to risk parity moves, liquidation to meet margin
calls elsewhere & potential selling out of the Middle East on the back of fiscal
worry re: oil developments. Whatever the reason, this outweighed the WHO's
decision to label COVID-19 a pandemic (finally), a rocket strike on a coalition
base in Iraq (which has killed 3) & a general round of increased worry/fresh
measures to combat the virus. On the virus front, U.S. President Trump is set
make an address from the oval office at 21:00 Eastern this evening (01:00 GMT).
Rumours point to outlining stricter travel measures, more clarity on the tax
plan and possibly invoking the Stafford Act to access disaster relief funds.
- Also worth noting the dislocations evident between CTDs & futures on
Wednesday, which seemingly drove the NY Fed into announcing beefed up overnight
repo ops, in addition to introducing 1 month repo facilities.
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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