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Free AccessUS Treasuries hovered near sesion...>
US TSYS SUMMARY: US Treasuries hovered near sesion prices highs after rise on
worries on Iran and North Korea, and post-auction relief buying spurred by
strong $12B 30Y reopening auction. Afternoon safe-haven bid in Tsys amid news US
Pres. Trump will announce Fri 12:45pm ET on Iran plans, and that USGSG could not
confirm if a N.Korea earthquake was manmade or not. Some FX-tied buying also
came in as US$ receded vs. Japanese yen.
- That followed solid 30Y bond auction: stopped through to 2.870% rate, 2.750%
cpn, strong 62.8% indirects, 10.6% directs, leaving only 26.6% for dealers to
mop up. Early afternoon saw 2/30Y, 3/30Y flatteners, short-covering and dip
buying after auction. Some had felt buyers would wait for Fri CPI.
- Morning pre-auction sales into 30Y auction; Asia bid in 2Y,5Y in early NY;
2way 30Y hedge fund flows, mixed flows in shorter issues. Tsys sold briefly on
high 0.4% Sep Core PPI, lower initl wkly jobless claims. Also 8:21 am BST/3:21am
ET block buy in 10Y Tsy futures (TYZ7) for 4,364 contracts.
- US swaps had 11:16 am ET $163,200 DV01 8/9/10Y butterfly, paper paying belly.
German Bunds gyrated, Bund futrs block buy of 2,000 RXZ7 at 161.39 at 7;25am ET.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.