Curve Bear Steepens On Monday

TYZ3 deals at 107-06, 0-00+, in line with late NY levels.

• Cash tsys finished 5-10bps cheaper across the major benchmarks, the curve bear steepened.
• Tsys reversed the bull flattening seen on Friday and sit at post-US CPI levels. Although geopolitical tensions remain high the reversal is attributed to no further escalation in the Israel/Hamas conflict as of yet.
• A firmer than forecast Empire Mfg print weighed on the space. The six-month ahead metric is at pre-pandemic levels.
• Fedpseak from Harker crossed early in todays Asian session, he noted that the Fed shouldn't be thinking about rate increases.
• The minutes from the RBA's October policy meeting headline in Asia, further out we have retail sales, business inventories and industrial production. Fedpeak from NY Fed President Williams, Gov Bowman and Richmond Fed President Barkin is due.