Curve Bear Steepens On Monday

TYZ3 deals at 108-06+, +0-01, in line with late NY levels.

• Cash tsys finished 1-12bps cheaper across the major benchmarks, the curve bear steepened.
• Tsy Yields climbed to new cycle highs on Monday, 10 Year Yield printed a high at 4.5436% before marginally paring gains and the 30 Year Yields reached its highest since 2011 (4.6604%).
• The recent climb in Oil prices lingered yesterday and concerns over the US fiscal deficit also weighed on Tsys.
• There was little reaction to the latest round of US data as the Chicago Fed Act. Index and Dallas Fed Mfg Activity Index were both weaker than forecast.
• Chicago Fed President Goolsbee said US rates were at their peak and the debate would soon shift to how long they'll hold there.
• Fedspeak from Kashkari headlines in Asia, further out we have US new home sales and Conference Board consumer confidence, Fedspeak from Gov Bowmen is due. We also have the latest 2 Year Supply.