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Treasuries ended Tuesday lower as......>

US TSY/RECAP
US TSY/RECAP: Treasuries ended Tuesday lower as cash 10-year note tried to hold
key 2.40% level into the 3pm ET futures close; the 10-year note had a brief
flirtation earlier with the 2.41% zone, but was around 2.408% at 3pm ET, then
yield rose back into the 2.41% area after 3pm ET amid speculation that Fed Chair
nominee Taylor might be the front-runner.
- Tsys tried to improve midmorning briefly on equity softness on US Pres.
Trump/Corker tiff. But US stocks marched up on good earnings.
- Tsys pressured by softer EGBS, stronger European PMIs, selling as US 10Y yield
rose over 2.4%. Eurodollar options: Global macro super-size big put spreads in
pit (150K EDZ 80/31 spreads vs. +75K each EDM 78/81 and EDU 77/80 spreads; acct
rolls out,down massive existing position: bets futures underestimate 2018 hikes.
Rather soft $26B 2Y auction. 
- T-Notes last at 124-20+ and down 3 ticks in Asia, 10-Year Yield last at 2.419

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