Free Trial

Curve Bull Steepens On Wednesday

US TSYS

TYM3 deals at115-27, -0-02, in line with late NY levels.

  • Cash tsys sit 4-11bps richer across the major benchmarks, the curve bull steepened.
  • Tsys firmed as CPI came in as core CPI came in as expected with the headline print a touch below expectations printing below 5% for the first time in 2 years.
  • Brief pressure came as the latest 10 Year Auction tailed despite an above average bid/cover ratio and indirect take up.
  • Gains in tsys marginally extended over hopes of a debt ceiling break through, Senate Minority Leader McConnell said there will eventually be an agreement on the debt limit.
  • FOMC dated OIS now price ~80bps of cuts in 2023.
  • Official CPI and PPI data from China headline in Asia-Pac today. Further out we have the latest monetary policy decision from the BOE, US PPI and Initial Jobless Claims. Fedspeak from Minneapolis Fed President Kashkari and Fed Governor Waller will cross. We also have the latest 30 Year supply.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.