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Bulls Aided By Wider Inputs, Yields A Touch Lower

US TSYS

The post-RBA move lower in ACGB yields and Schnabel-derived support in EGBs have combined to bias Tsy yields a touch softer thus far, with benchmarks running 2.0-2.5bp lower on the day.

  • TYH4 sticks within yesterday’s boundaries, last +0-11 at 110-17, 0-01 off the peak of its 0-08 range. Friday’s high (110-28) presents the first level of technical interest to the upside.
  • Asia-Pac hours saw desks flag real money demand in the long end of the curve.
  • Fed funds futures last show ~128bp of cuts for ’24 on the whole, sitting off Friday’s dovish extreme of 135bp of cuts. 18bp of easing is priced through the March FOMC, with the first full 25bp cut more than fully discounted come the end of the May FOMC.
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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