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The PBoC's decision to partially roll.......>

US TSYS: The PBoC's decision to partially roll some of the maturing 1-Year MLF,
coupled with a steady interest rate being applied to the ops, provided some
support to core global FI overnight. Although the initial, limited knee jerk has
now faded. Some sceptisicsm from quarters of the U.S. biz community (Chamber of
Comm chair) re: the chances of a solid Sino-U.S. trade deal had little impact on
the space, with this week's jnr ministerial talks now formally unveiled.
- T-Notes last +0-02 at 129-04, yields 0.8-1.4bp lower across the curve.
Eurodollar futures sit unch. to 4.0 ticks higher through the reds.
- There was nothing in the way of standout flow observed overnight.
- Production data provides the highlight of the local docket today, with the
fallout from the weekend attacks on Saudi oil infrastructure still front &
centre pre-FOMC (the latest MonPol decision is scheduled for Wednesday).
Elsewhere, 10-Year TIPS supply will be observed. Short-end funding matters will
be eyed after yesterday's spike in repo. Some have attributed the spike to tax
payments, coupon settlements and the associated reserve drains, but others have
been pointing to a structural $ funding storm for some time.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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