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Trading is all about................>

US TSYS SUMMARY
US TSYS SUMMARY: Trading is all about geo-political risk today with the usual
risk-averse instruments trading firmly. 
- Gold has broken through significant resistance this morning and technicians
are getting excited. The yen is stronger and the EUR is at its highest
trade-weighted level for a year and the EURUSD jumped through 1.20. The 10Y JGB
almost touched 0% at one point.
- Within the risk-off trade, the 10-year Treasury yield is substantially lower.
At the most recent, the yield was 6.3bp lower at 2.0963% with the curve bull
flattening. 
- Despite the double 2Y and 5Y auction on the UK bank holiday, the new
securities do not appear to be suffering unduly.
- The Bund-Tsy 10Y spread has tightened to 178bp today, its lowest for just over
a week. 
- Despite the big risk-trade, swap spreads are showing very little movement
today and breakeven spreads have hardly budged.

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