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The day started with a moderate........>

US TSY/RECAP: The day started with a moderate risk-off tone as the market
continued to digest late Tue US political headlines, before Tsys pared gains, on
knock-on response to headlines suggesting that Germany plans to up its bond/bill
issuance EUR10bn in '19.
- There was little notable reaction to the minutes from the latest FOMC MonPol
decision, which most deemed as balanced, with focus quickly turning to Fed Chair
Powell's address at Jackson Hole on Friday. Many officials saw another hike as
being likely appropriate "soon." Committee members were divided over the risks
posed by an inverted yield curve, while the FOMC highlighted trade, housing & EM
as downside risks.
- The increase in futures rolling from Sep to Dec helped volume once again, with
two-way positioning observed alongside light deal-tied flow in short end. The
options space saw decent hedging ahead of Friday's Sep contract expiry.
- Eurodollars were mildly higher across the strip in the middle of a tight
range, with a parallel shift across the reds through golds.
- T-Notes last at 120.20, U.S. 10-Year cash Tsy yields closed at 2.819%.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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