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Weaker, Sideways Trade Post-Auction

US TSY FUTURES

Tsys holding mildly weaker levels for the most part, 2Y futures just above steady in late trade. The long end has pared gains following the decent $24B 20Y Bond auction re-open as flow turns two-way, modest positioning ahead return of economic data Thursday (weekly claims, leading index, existing home sales). Focus also turns to ECB policy announcement after Bank of Canada held rates steady but tapered QE by CAD1B to CAD3B.

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