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Curve Bear Flattens On Thursday

US TSYS

TYU3 deals at 112-07, +0-03, in line with late NY levels.

  • Cash tsys finished 9-15bps cheaper across the major benchmarks, the curve bear flattened.
  • An upward revision to Q1 US GDP on the third reading and softer than forecast Initial Jobless Claims pressured tsys.
  • Q1 GDP was revised higher to 2.0% Q/Q a rise of 1.4% had been expected.
  • Tsys held cheaper observing narrow ranges for the remainder of the session.
  • Fed dated OIS price a terminal rate of 5.40% in November. There are ~60bps of cuts priced for 2024.
  • Official PMI data from China headlines in Asia today, further out we have Personal Income and Consumer Sentiment.

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