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Tsys have edged higher in the main, with....>

US TSYS
US TSYS: Tsys have edged higher in the main, with the curve sitting a touch
flatter in what has has been a lacklustre Friday session in Asia.
- The latest 30-Year auction tailed by 0.3bp on Thursday, with the cover ratio
easing to just below the prior and 6-auction average. Looking at the breakdown,
dealer takedown edged higher, at the expense of direct bidders.
- Fed non-voter and dove Evans spoke yesterday, noting that 1 or 2 further hikes
is reasonable by year end, as U.S. fundamentals are extremely strong. Evans also
believes that inflation has returned to near the 2% target and deems it likely
that it will remain there. Evans is a voter in 2019, and suggested that debate
over whether to pause or continue with hikes will come under intensified debate
next year as the Fed approaches neutral.
- The Eurodollar strip sits virtually unchanged last.
- Focus is on U.S. CPI & U.S. wage data on Friday.
- T-Notes last at 119.25, U.S. 10-Year cash Tsy yields closed at 2.924%.
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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