Morning 7-17

Markets:

 Bunds continue to squeeze higher with less than average volume resulting in yields some 11 bps below most recent highs. U.K. Gilts +52 ticks as Brexit worries /slow economy persist. Treasuries following European peers higher a good enough reason  U.S. 10 year yields still have solid resistance at 2.15% as that level tested 4 consecutive days but yet to  break, Currently  yields at 2.09%. Growing chatter that the Fed needs to cut rates to help with a dollar shortage and to aid in Financing the Government as foreign entities pull back from buying  U.S. debt, Yesterday the OMB stated US deficit to surpass  1 trillion Dollars.Treasuries higher on Day but Dec Eurodollars down a few ticks.

 Grains found themselves with a nice bid this morning after trading heavy overnight as talk of much larger preventive planting acres to be announced by the USDA, meaning a smaller crop then expected is possible. Corn and Soy turn losses into gains as this story circulated .yesterday’s API oil storage numbers were in line, Currently trading with a bid after yesterday’s losses, CL +1%. Commodities little changed   but LME copper stands out trading lower by 1% but Comex little changed. Dollar index sideways and likely to stay that way as Economic calendar light and only one fed speaker on Schedule, KC president George, Hawk speaks at 12:30.Outside of some tape bombs today looks like a summer type choppy trade.

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