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Treasuries are off the day`s best...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries are off the day`s best levels Tuesday but remain
underpinned by waning global risk appetite as markets return from holiday.
- After a quiet Asia-Pac session, Tsys rallied alongside Gilts/Bunds as Europe
trading picked up. 10-Yr yield hit lowest since Sep 2017 (2.2710%).
- Jun 10-Yr futures (TY) up 11.5/32 at 125-8 (L: 124-29 / H: 125-10.5).
- Curves flatter: 3M10Y down 5.2bps, at -7.2bps (L: -8.391), 2Y10Y -1.388bps at
14.0bps (L: 12.861). 
- Focus has been on European political risk (Italian spreads widening sharply on
renewed Rome vs Brussels rhetoric). But overall appears to be follow-through
from safe-haven rally late last week.
- S&P e-mini off 0.3%, DXY up 0.2% as emerging market FX looks especially weak.
- No Fedspeak today, and limited data releases (Conf Board confidence, Dallas
Fed Manufacturing, and house prices).

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