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A Little Weaker, Powell Comments Set To Dominate

US TSYS

Tsys are a little weaker at typing, with UK fiscal speculation and Chinese easing expectations dominating recent news flow.

  • BoJ easing speculation has also factored into wider price action.
  • TYM4 last prints -0-05+ at 111-04 (range 111-02+-111-08+).
  • Cash Tsy yields are little changed to 1.5bp higher on the day, light steepening seen.
  • Day 1 of Fed Chair Powell’s Semi-annual testimony headlines the U.S. calendar.
  • Further Fedspeak will come from Daly & Kashkari, with the Beige Book also scheduled to be released.
  • ADP employment & JOLTS job opening data is also due.
  • FOMC-dated OIS sticks to familiar ranges ahead of those events.
  • 21.5bp of cuts are priced through the June meeting, with 86bp of ’24 cuts currently showing.
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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