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The bid in Tsys evaporated late on.....>

US TSY/RECAP
US TSY/RECAP: The bid in Tsys evaporated late on Wednesday, as the space
extended to fresh session lows amid market chatter that U.S. Pres Trump received
trade concessions from Europe, agreeing to work towards lowering industrial
tariffs, which was confirmed, with no fresh tariffs to be implemented during the
negotiation period. The EU has also pledged to buy more U.S. soybeans & natural
gas. This came after talk surrounding auto tariffs/senators planning a bill to
delay Trump's touted auto tariffs put a bid into the space.
- The 5-Year auction stopped through by 1.0bp, with the cover ratio holding up
and dealer takedown edging lower as indirect participation improved.
- T-Notes continue to operate just above worst levels, with Nasdaq futures under
pressure after a Facebook provided a disappointing outlook.
- The Eurodollar strip moved lower, alongside Tsys going out at/near lows.
- Focus is on Thursday's 7-Year auction ahead of Friday's U.S. GDP release.
- T-Notes last at 119.12, U.S. 10-Year cash Tsy yield closed at 2.975%.
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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