10YY Ticks Away From 5%

TYZ3 deals at 106-13, 0-02+, in line with late NY levels

• Cash tsys finished 3-8bps richer across the major benchmarks, the curve bull flattened.
• The 10-Year Yields briefly breached 5% on Monday before ticking lower and finishing dealing at 4.8500%. A high of 5.0187% was printed, this was the first time since Sep 2007 that the handle has been breached.
• Tsys then firmed off session lows with short covering adding a level of support. Pershing Squares Bill Ackman noted on X that he had covered his Tsy shorts due to the level of risk in the world.
• Gains extended through the NY session, PIMCOs Bill Bross wrote that they are buying short dated interest rate futures in anticipation of a US recession. WTI fell ~3% which added support at the margins.
• The docket is thin today in Asia, further out we have flash S&P Global PMIs, Phily Fed Non-Mfg Index and Richmond Fed Mfg Index. The latest 2-Year Supply is also due.