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Tsys traded weaker by the bell,........>

US TSY/RECAP
US TSY/RECAP: Tsys traded weaker by the bell, going out near session lows on
heavy volume - inflated due to massive Sep/Dec roll volume ahead of Friday's
first notice. The curve finished the day a little steeper, as the space sold off
for a second session, on the back of the U.S.-Mexico trade deal.
- The strong consumer confidence headline data drew attention, allowing Tsys to
edge to fresh lows, although the reaction was limited.
- The latest 5-Year Note auction drew a modest 0.1bp tail, with dealer
participation a little lower than the recent average, as indirect participation
held up, although the cover ratio slid to the lowest level observed since April.
- Fed's Kashkari (non-voter) offered little to no fresh insight, while Richard
Clarida's appointment as FOMC Vice-Chair passed through the Senate.
- Looking at the Eurodollar strip, EDU8 finished slightly higher, with the rest
of the strip lower, on light volume.
- U.S. GDP & 7-Year supply headline on Wednesday, with 2-Year FRN supply also on
the slate.
- T-Notes last 120.04, U.S. 10-Year cash Tsy yields closed at 2.880%.
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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