Creeping Richer In London Morning

Tsys firm with little in the way of headline drivers to flag.

• Peripheral tightening in the Eurozone stands out, with the passage of yesterday’s BTP syndication/strong demand (covered earlier) still being felt there, along with indications of strong demand at today’s Spanish offering.
• The previously flagged rounds of screen lifts helped TY futures to fresh highs, with the contract last +0-07 at 112-04, just off the top of its 0-09 session range.
• Yesterday’s high has been breached, although bulls still remain some way shy of challenging early ’24 highs.
• Cash Tsy yields run 2-3bp lower across the curve.
• FOMC-dated OIS prices ~140bp of cuts for ’24 (vs. the ~135bp seen at this time yesterday).
• Comments from NY Fed President Williams & 10-Year Tsy supply (after yesterday’s well-received round of 3-year issuance got ’24 coupon supply off to a strong start) provide the NY highlights.