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Treasuries and rates are a little...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries and rates are a little weaker Wednesday, as markets
continue to digest seemingly positive developments in the US/China trade
dispute, and look ahead to key data.
- Chinese Premier Li earlier vowed not to weaponize the CNY in the escalating
trade war, helping risk appetite. The Dec 18 T-Note future is down 9 ticks at
118.7, having traded in a 17 tick range of 118.63-118.80.
- The cash curve is flat, with 2-Yr yield up 0.2bps at 2.8011%, 5-Yr up 0.2bps
at 2.9447%, 10-Yr up 0.2bps at 3.057%, and 30-Yr up 0.2bps at 3.2031%.
- However this means that Tuesday's sharp steepening has been maintained, 2s10s
still around 25.381bps after rising more than 4bps Tuesday.
- Eurodollar futures are off 1.0-1.5 ticks across the strip.
- Data gets underway at 0700EST with MBA mortgage applications, with 0830EST
bringing Q2 current account and Aug housing starts.
- The seasonally adjusted pace of housing starts is expected to rise further to
a 1.245 million annual rate in August after moving up slightly in July.

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