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A Slower Paced Sell-Off After Yesterday’s Rout

US TSYS
  • Cash Tsys have sold off further today after yesterday’s sell-off that had started early on before kicking on with a hawkish Powell.
  • 2s10s sit largely unchanged from late yesterday levels at an extremely flat 17bps after a slight steepening intraday from earlier lows of just 13.5bps.
  • 2YY +5.5bps at 2.170% (new highs since May-2019), 5YY +4.8bps at 2.369%, 10YY +5.3bps at 2.342% and 30YY +4.4bps at 2.562%.
  • TYM2 sits 7+ ticks lower at 122-30 on above average volumes after very low volumes for much of yesterday’s session until Powell spoke. It sits close to support at 122-29+, 76.4% of the Oct’18-Mar’20 upleg.
  • FOMCspeak: Williams (permanent voter) on BIS panel discussion at 1035ET, Daly (2024) at 1400ET and Mester (2022) on economic outlook and mon pol with prepared text and Q&A at 1700ET.
  • Other Fedspeak: NY Fed Wuerffell Sr VP on post-LIBOR world, ISDA webinar, Q&A (0910ET).
  • Bill issuance: US Tsy $34B 52W bill auctions (1130ET).

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