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A Little Cheaper & Steeper Into CPI

US TSYS

TYZ3 tests initial support (109-19) with spill over from EGBS evident, as the latter trades on the defensive in the wake of last night’s hawkish ECB sources piece from RTRS.

  • The contract operates at the base of a narrow 0-06 range, while cash Tsys sit 1-3bp cheaper, steepening.
  • Another ’23 high in crude oil futures will have aided the cheapening.
  • See the previous bullet for more details on Fed-related STIR pricing, with the picture little changed ahead of the impending CPI release (our full preview of that key risk event here).
  • 30-Year Tsy supply and the real AWE data that accompanies the CPI release pad out the NY docket.
  • Headline flow thus far has centred on the aforementioned ECB sources report, Sino-U.S. and Sino-EU trade relations & continued speculation surrounding Chinese policy support measures.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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