10 Year Yield Highest Since 2007

TYU3 deals at 109-02+, unchanged from yesterday’s settlement level.

• Cash tsys finished 6-8bps cheaper across the major benchmarks on Monday, the belly lead the cheaps.
• In a data light data light session, also in the absence of any headline driver, tsys extended recent lows. TY breached the 109 handle, and the 10 Year Yield printed its highest level since 2007 at ~4.35%.
• Participants perhaps have one eye on Fed Chair Powell's speech at the Jackson Hole Symposium on Friday, a Bloomberg Market Pulse Survey noted that 80% of those surveyed said Powell’s Jackson Hole speech will reinforce the message of a hawkish hold.
• Rate cut expectations for 2024 have been marginally wound back, FOMC dated OIS price a terminal rate of 5.45% in November with ~60bps of cuts by July 2024.
• There is a thin docket in Asia today, further out we have Existing Home Sales, Philadelphia Fed Non-Mfg Index and Richmond Fed Business Survey. Fedspeak from Richmond Fed President Barkin, Chicago Fed President Goolsbee and Gov Bowman cross.