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Continuation of Rally That ISM Miss Added Fuel To

US TSYS
  • Cash Tsys have continued to build on the rally after the ISM miss, ranging from -21-25bps over 2-10Y tenors and led lower by 5YY (real -28bps, breakeven +3bp).
  • Curves: 2s10s unchanged on the day having unwound earlier steepening, 5s30s now +13.5bps at -17bps for highest since Sep 21 FOMC.
  • TYZ2 hits a high of 113-16 for a 1-14 increase on the day, having cleared resistance at 112-30+ (Sep 23 high) prior to the data, next eyeing the 20-day EMA of 113-30.

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