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Cheaper But Off The Session Cheaps Instigated By Fed Mester

US TSYS

TYZ3 is currently trading at 107-09+, -0-01 from NY closing levels.

  • Cash tsys have moved off Asia-Pac cheaps instigated by Fedspeak from Mester and are sitting flat to 1bp cheaper across benchmarks.
  • A final interest rate hike will likely be needed to boost the fed funds rate to its cycle peak, where it will sit for some time to stabilize prices, Federal Reserve Bank of Cleveland President Loretta Mester said Monday. (See MNI: One More Fed Hike Likely, Then Hold For Some Time -Mester here)
  • Limited data releases on Tuesday, with the focus on ADP on Wednesday ahead of Friday's September Jobs data.

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