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US TSY/RECAP: Tsys finished lower but off of the early session lows, after
see-sawing in a relatively narrow range on Monday.
- Traders had little to work with against a backdrop of second-tier data & the
FOMC in media blackout ahead of its upcoming MonPol decision. The space eased as
geopolitical tension softened over the weekend, with cautious optimism
surrounding US-China trade relations & North Korea. 
- The first half of the session was subject to decent futures volume, although
Monday represented a relatively quiet start to the week after 10-Year yields
failed to breach 3.00%. Better buying & short covering into early weakness
helped the space to recover. Flow included prop accounts, bank portfolio and
real money names buying in intermediates out to the long end. Heavy Eurodollar
option volume was also noted, early put buying targeted year end hikes to be
priced into the curve, meanwhile, short end Eurodollar futures were well bid as
3M $LIBOR fixed modestly higher. Large upside call buys were noted in the second
half of the session.
- T-Notes last at 119.11, US 10 Years yields last at 2.975%.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |