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Free AccessTreasuries traded mainly............>
US TSYS SUMMARY: Treasuries traded mainly weaker/flatter midday Mon after mkt
ebbed overnight from 2am ET session high price then sank more in early NY. Tsys
had early NY choppiness amid shifting German politics; seems it's difficult for
German leader Angela Merkel to form a coalition govt. But German President said
he wants various parties to try a coalition again, and to remember
responsibilities. Brisk selling of Italian BTPs followed his talk.
- Tsys saw black-box selling as US$ rose vs. Jpn yen as correlated trade
revived, first selling wave starting 8:26am ET, then a wave midmorning. Traders
eyed worries on 2018 rate hikes. Goldman Sachs expects 4 rate hikes; head trader
said Fed dots price in 3 hikes, while Tsys only priced in 1-2. Some unload Tsys
positions amid bets on whether tax reform plans will/won't pass Congress; (House
passed it; House, Senate out this w).
- Tsy futures had 9:31am ET block: 5,000 TYZ at 124-26.5, crossed on offer. Cash
Tsys: 5/30Y, 2/10Y flatteners. Dec/Mar Tsys futures roll picks up in earnest:
heavy volume. Dec Tsy optns expire on short Fri. RP: 5Y, 10Y tighter. CORPS:
Brisk issuance.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.