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US Treasuries are trading close.....>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries are trading close to session lows, weighed by
mild risk-on flows as Italian BTPs have what appears to be a relief rally. 10-yr
Tsy note yield is 1.7bp higher at 3.0763% while curve is ever so slightly
flatter.
- There has been little in the way of inspiration for Tsy traders during the
Asian-Pacific session, with Fed non-voter Kashkari offering his usual dovish
remarks heading into early Asia-Pacific hours. This came after voter Bostic &
non-voter Harker offered little new in front of the FOMC May meeting Minutes due
Wednesday. US Tsy edged higher though before European open with curve slightly
flatter.
- Tone reversed though and Tsys sold off as majority of European markets
re-opened from extended holiday weekend with mild risk-on sentiment. News that
Italy President is holding off announcing new PM appeared to support the move.
- Eurodollars are 0.25 to 1.5 ticks lower with strip steepening slightly but
volume has been light. While both breakevens and swaps spreads are little
changed looking for next directional move.

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