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A Touch Cheaper Into NY Hours

US TSYS

Tsys sit a little off of early London lows after some weakness in Bunds and a breach of Asia-Pac lows in TY futures applied some light pressure during the London-Asia handover.

  • TYZ3 last sits -0-00+, operating 0-02 off the base of a contained -0-06 range, with volume limited at ~165K lots.
  • Cash Tsys sit flat to 1.5bp cheaper, with a modest steepening bias observed.
  • Another fresh YtD high for crude oil futures has been lodged during the London morning, with 5y5y breakevens sitting closer to 2.70% than 2.60%.
  • FOMC-dated OIS is little changed across the curve, with any modest pre-NY hawkish upticks mostly unwound.
  • Building permits and housing starts data headlines the NY docket, with 20-Year Tsy supply also due.
  • A quick reminder that we published our full FOMC meeting preview yesterday, which can be found here.
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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