Free Trial

Curve Flatter, Aided By Block Flow In Asia

US TSYS

The broader curve moves back towards session flats as Europe filters in, with cash Tsy benchmarks running 1.5bp cheaper to 4.5bp richer.

  • A quick reminder that Asia-Pac block flow helped bias the curve in that direction (FV/US flattener, -11,950 lots/+3,850 lots).
  • TYZ3 is +0-04 at 107-27, holding to a narrow 0-07+ range thus far.
  • Overnight Fedspeak saw Daly (’24 voter) point to the potential for a higher neutral rate of interest (perhaps 2.5-3.0%, along with the potential for the need to do less on the tightening front based on market conditions).
  • Terminal rate pricing on the FOMC-dated OIS strip is ~7.5bp above prevailing levels (through December), before ~61bp of cuts are priced through September.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.