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US Tsy have reversed overnight......>

US TSYS SUMMARY
US TSYS SUMMARY: US Tsy have reversed overnight losses and squeezed higher
during London morning trade, taking cue from move higher in both German Bunds
and UK Gilts, albeit in light flows, as US President Trumps warns May that a
US/UK free trade deal looks unlikely under PM May's Brexit plan.
- US 10-yr note yield is 0.5bp lower at 2.84% with yield curve ever so slightly
flatter as short-end remains anchored ahead of release of Fed Powell's
semi-annual policy report at 1100ET.
- Earlier in Asia, US Tsy edged lower in mile uptick in risk appetite but stuck
to a tight range. Sources did note better selling in general in cash, with
decent Japanese selling in the 5-yr sector alongside some scattered real-money
selling in 10s; Also some bank buying in the short-end of the curve seen against
the longer end selling.
- Tsys found a bid as European session got underway and recovered lost ground
with no catalyst seen to drive the markets apart from comments from US President
Trump in a Sun interview.
- Eurodollars are 0.5-1.5 ticks higher led by move in greens/blue contracts

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