Curve Bear Flattens On Monday

TYU3 deals at 109-30, -0-02, in line with late NY levels.

• Cash tsys finished 2-7bps cheaper across the major benchmarks, the curve bear flattened.
• Tsys were moderately pressured on Monday, a lower lower in the second half of the NY was seen as rock locking activity related to Bank of America issuance and continuing concerns over the Chinese economy weighed.
• Earlier tsys had firmed off session lows as the USD ticked away from session highs and US Equities were firmer.
• FOMC dated OIS remain stable; a terminal rate of ~5.40% is seen in November, there are ~70bps of cuts seen by July 2024.
• In Asia today we have a busy docket including Japan Q2 GDP, Australia Q2 WPI and Chinese July Economic Activity. Further out US retail sales, empire manufacturing, business inventories and cross-border investment are due. Fedspeak from Federal Reserve Bank of Minneapolis President Neel Kashkari crosses.