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Yesterday's collapse in mainly......>

US TSYS SUMMARY
US TSYS SUMMARY: Yesterday's collapse in mainly tech stocks led to a bullish
flattening of the yield curve that has been added to in European trading.
- The 10Y Tsy yield is another 2bp lower at 2.755%. Various reasons given for
the rally in European bonds but Gilts leading and a host of important technical
levels have been broken in the Bund contract. Participants also note the
impending Japanese FY-end and large EGB cpns/redemptions in April.
- Jun-18 Eurodollar has perked up to 97.73, a 5 tick rally since Monday. Talk
that the 3m libor fixing finally comes in unchanged after weeks of rising. A
source notes a decline in T-bill issuance in April that should help compress
OIS-libor soon.
- Final auction of the week will be the 7Y note. Yesterday's small tail on the
5Y note auction was largely ignored by a market that was watching stocks.
- The data calendar is not market moving today and is headlined by another
revision to Q4 GDP.

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