September 28, 2022 00:42 GMT
Tsys have nudged lower in recent trade, with the major cash benchmarks running 1.5-3.0bp cheaper, as 7s lead the weakness.
- TYZ2 has printed as low as 110-26, with Tuesday’s base (110-22) providing initial technical support. A break below there would expose the 3.0% 10-DMA envelope. The bearish technical trend remains well and truly intact.
- When it comes to drivers, we would point to the bear steepening of the JGB curve and previously flagged source reports pointing to the potential departure of U.S. Tsy Secretary Yellen (post-midterms) as potential drivers here.