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A Touch Flatter, Off Best Levels As E-Minis Tick Higher

US TSYS

The overnight flattening impulse holds although Tsys are back from best levels as e-minis nudge higher.

  • Benchmark yields sit flat to 2.5bp lower.
  • TYU3 is +0-01+, trading closer to the low than the high of the overnight range.
  • Chinese CPI deflation headlines dominated in Asia, although that outcome was generally as expected, with core metrics and pipeline stimulus seemingly limiting worry re: engrained CPI deflation in the world’s second largest economy.
  • FOMC-dated OIS shows a terminal policy rate of 5.415%, with around 67bp of cuts then showing through June ’24.
  • MBA mortgage apps headline the NY data docket, while 10-Year Tsy supply will come on the heels of yesterday’s well-received 3-Year auction.
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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