Cheaper On Monday

TYM3 deals at 115-07+, +0-02, in line with late NY levels.

• Cash tsys finished 7-9bps cheaper across the major benchmarks.
• Tsys were pressured as the latest quarterly NY Feds quarterly loans officers survey showed banks tightened lending standards in Q1.
• Corporate issuance activity saw Tsys come under further pressure, as rate locking activity weighed.
• Earlier in the session Amid light volumes, due to London markets being closed due to the observance of a national holiday, tsys were pressured through the London session. There was no overt headline driver as participants perhaps focused on the headline number of Friday's NFP which saw the unemployment rate tick unexpectedly lower.
• Fed dated OIS now price ~90bps of cuts in 2023 with a terminal rate of 5.10% in June.
• There is a thin data calendar on Monday. Fedspeak from Fed Governor Jefferson and NY Fed President Williams will cross.