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Corporate Issuance Weighing

US TSYS
  • Tsys have come under pressure with corporate issuance plans seemingly weighing (Bloomberg sees eight issuers looking to sell in high-grade market today).
  • The steepening sees TYM4 push through overnight lows to 109-29+ in another move nearer key support at the bear trigger of 109-25+ (Feb 23 low). Clearance could open 109-14+ initially (Nov 28, 2023 low).
  • In cash space, the day’s steepening sees 2Y yields remain comfortably off overnight highs of 4.7382 (within 1bp of YTD highs) but 10Y yields touching 4.3242 are through Friday’s highs and with an eye of YTD highs of 4.3486%.
  • 2s10s of -39.7bps remains within last week’s range which topped out at -39.1bps.
  • NAHB housing market still to come along with Treasury bills issuance.

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