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Cheaper In Asia-Pac After Fed Mester Comments

US TSYS

TYU3 is currently trading at 107-09, -0-01+ from NY closing levels.

  • Cash tsys are 1-2bps cheaper across benchmarks in early Asia-Pac dealings.
  • 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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