September 13, 2023 10:21 GMT
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.
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