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A Touch Firmer, Holding To Tight Ranges Thus Far

US TSYS

TY futures continue to hold to a very narrow 0-03+ range, moving away from session cheaps alongside Bund futures, after showing very muted reaction to monthly Australian CPI data and the latest ECB sources piece from BBG. TYU3 is +0-02+ as a result, while cash Tsys run 0.5-2.0bp richer, bull steepening at the margin. FOMC-dated OIS shows ~29bp of tightening through November, where the terminal rate is currently seen, followed by 66bp of cuts through June (vs. current terminal rate levels). The dated-OIS picture hasn’t really been altered by yesterday’s raft of data, which underscored the degree of resilience of the U.S. economy (at least in some sectors).

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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