Curve Marginally Steeper On Monday, US CPI In View

TYU3 deals at 113-14+, +0-03, in line with late NY levels.

• Cash tsys finished 2bps richer to flat across the major benchmarks, light bull steepening was apparent.
• Tsys firmed off session lows as the S&P500 printed its highest level since April 2022 and WTI futures were pressured on demand concerns falling ~4%.
• In the European session, despite the absence of a headline driver tsys were pressured from session highs, an earlier rally had occurred after The Messenger reported that the US was preparing plans to evacuate American citizens from Taiwan. The lack of official backing may have contributed to the offer.
• The latest 3-Year auction progressed smoothly before a 10-Year auction tailed however the brief pressure seen was quickly unwound.
• FOMC dated OIS remain stable, ~6bps of hikes are priced in for Wednesday's meeting with a terminal rate of 5.30% in July.
• There is a thin docket in Asia today. Today will be dominated by the May US CPI print, the market expects headline CPI to tick lower to 0.1% M/M from 0.4% M/M prior. The MNI preview is here.