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Tsys finished just off session lows....>

US TSY/RECAP
US TSY/RECAP: Tsys finished just off session lows on light volume, with the
belly of the curve experiencing some modest underperformance.
- The uptick in the yuan/spill over into equities on news that China's PBoC had
spoke to bank's, advising them not to engage in herd behaviour re: the yuan
weighed on the space.
- IG issuance continued to mount, which added additional weight.
- The latest 3-Year Note auction was not pretty. The auction resulted in a 5th
consecutive tail for paper of this tenor (at 0.2bp), with the highest yield at
auction since May 2007. Cover ticked up, but still undershot the recent
averages. Indirects took down their smallest share since late 2016, with dealers
mopping up nearly 50% of the supply.
- Focus turns to 10-Year supply on Wednesday, as well as comments from Fed voter
Barkin.
- T-Notes last at 119.15, US 10-Year yields closed at 2.973%.
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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