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Tsys surged late on, blowing past......>

US TSY/RECAP
US TSY/RECAP: Tsys surged late on, blowing past the earlier high, with worries
over the Italian political situation dominating, while US-Sino trade issues
added an additional layer of support. The belly of the curve outperformed on the
day, as US 10-Year Tsy yields fell by ~15.0bp.
- The session was one of heavy volume, with the rolls active and heavy options
volume favouring upside calls/bull spreads.
- Fed rate hike bets eased with markets now pricing a ~72% chance of a hike in
June.
- The Eurodollar strip went out in the top end of the range, with the greens
leading the strip.
- Wednesday will bring the release of the second Q1 US GDP estimate & the ADP
employment report, ahead of Thursday's PCE data & Friday's labour market report.
- On the Fedspeak front Thursday will bring comments from Brainard, Bostic &
Bullard.
- T-Notes last at 121.05+, US 10-Year yields closed at 2.781%.
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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