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US Tsys are trading lower and and...>

US TSYS SUMMARY
US TSYS SUMMARY: US Tsys are trading lower and and close to session lows weighed
by fall in German Bunds on expectation that the ECB could start rising rates
earlier than initially thought following a Bloomberg ECB sources story. US 10-yr
Tsy yield is 2.6bp higher at 2.857% with curve modestly flattening with 5s/30s
0.8bp tighter at 22.8bps.
- Tsy held a tight range during Asia session, but started to edge lower as
European session got underway as markets digested Bloomberg ECB sources story
released Wednesday night that said some on the GC are concerned markets not
pricing higher chance of rate hikes in 2nd half of 2019.
- There is a full calendar of key events waiting for return of US markets with
the private ADP employment metric, ISM non-mfg composite and FOMC June meeting
minutes due today, ahead of Friday's labour market report and U.S. President
Trump's decision on the implementation of tariffs on China.
- Eurodollar strip is 0.5 to 2.5 ticks lower with green and blue contracts
coming under the most pressure. While breakevens are touch wider but swap
spreads little changed.

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