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Tsy futures finished near session......>

US TSY/RECAP
US TSY/RECAP: Tsy futures finished near session lows Tuesday, little changed,
with T-Notes sticking to a tight range. Curve modestly steeper. Space backed
away from lows on knee-jerk reaction to UK PM May's Brexit deal being defeated
in the meaningful vote, before the bid faded & the space retraced.
- Fed voter George, a staunch hawk, signalled her support for a pause in
interest rate hikes, saying rates are approaching a neutral setting & there is
no urgency to make another move, with Kashkari & Kaplan remaining cautious.
- The minutes of the Fed's Dec discount rate meeting showed divisions re: a hike
in the discount rate just days ahead of the Bank's Dec MonPol decision.
- Empire manufacturing data was soft.
- Fox 5-part deal sized at $6.8bn, larger than exp.
- Aggressive selling of Z19 Eurodollar strangles extended on last week's theme,
with the futures strip trading marginally mixed.
- Fed's Kashkari will speak Weds, with the Beige Book also set for release, data
releases are limited.
- T-Notes last 121.27, U.S. 10-Year cash Tsy yields closed at 2.711%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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