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Treasuries have been strengthening...>

US TSY OPTIONS
US TSY OPTIONS: Treasuries have been strengthening for most of Wednesday
alongside sagging equity futures, with key U.S. inflation data up later.
- The short end has reversed Tuesday's back-up, with the curve bull steepening.
The 2-Yr yield is down 4.1bps at 1.8888%, 5-Yr is down 3.3bps at 1.8824%, 10-Yr
is down 2.1bps at 2.1222%, and 30-Yr is down 1bps at 2.6046%.
- Sep 10-Yr futures (TY) up 5/32 at 126-30.5 (L: 126-24 / H: 127-01).
- ED futures slightly higher across the strip, Dec19 thru Mar21 up 3-4 ticks.
- All this alongside softer oil prices (WTI down 2.6%) and equities (S&P Eminis
down 0.3%), with risk appetite having begun to fade a bit Tuesday on Trump`s
latest comments on China trade prospects.
- All eyes on May CPI at 0830ET, which looks increasingly key ahead of next
week's FOMC. Headline est. 0.1% M/M; core 0.2%.
- 1300ET sees 10-Yr note auction for $24bln.

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