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USDCAD TECHS

Circling Major Support

US TSYS SUMMARY

Stocks and Rates Near Session Highs Late

AUDUSD TECHS

Tepid Bounce

LATAM

OUTLOOK: WEEK AHEAD

US EURODLR OPTIONS

Nice Mark for Early Put Buyer

Tsys extended to fresh highs late in...>

US TSY/RECAP
US TSY/RECAP: Tsys extended to fresh highs late in the day on Wednesday, with
T-Notes closing at/near session highs, operating on decent volume, with the
belly of the curve outperforming in cash trade.
- T-Notes moved to fresh highs on the FOMC statement, as the Fed's removal of
"accommodative" drew buyers, in spite of the FOMC implementing the widely exp.
25bp hike. The lack of outright hawkishness in the statement/press conference
drew a 2nd wave of demand (after a quick retrace lower), even though Chair
Powell was quick to play down the removal of "accommodative" from the s'ment,
saying this does not signal a change in pol. Powell reiterated pol is still
accommodative & noted that overall fin'l conditions remain accommodative. Some
support may have be drawn from month/quarter end re-allocation weighing on
stocks/supporting Tsys, while Fed Chair Powell noted that that "by some
valuation measures, stocks are high historically."
- Focus Thursday switches to U.S. durable goods data & addresses from Fed's
Powell & Kaplan.
- T-Notes last 118.26+, U.S. 10-Year cash Tsy yields closed at 3.048%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com