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The Treasury curve is lower this....>

US TSYS SUMMARY: The Treasury curve is lower this morning, the 10Y UST yield has
shed 0.9bp to 2.65%. However, the path of the swap curve is at odds with
Treasury movements and the 10Y swap curve is just over 2bp lower leading to a
1.25bp fade of the swap spread widening movement seen late last week on the back
of the government shutdown. The 10Y swap spread is currently +4.5bp. Swap
volumes have been elevated on the SEFs.
- The US shutdown enters its first working day although there is a key Senate
vote scheduled for around noon Eastern time that would fund the government for
three weeks. However, it is unclear whether the plan will attract enough
Democrat Senators.
- The data schedule is fairly limited today with only the Chicago Fed National
Activity Index. Tomorrow, will see the start of the 2Y, 5Y & 7Y auctions, which
will be far more difficult to call because of the impasse in DC.
- In FX markets, the dollar has weakened since the start of the European open,
with the EURUSD back to 1.225.

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