Curve Steepens, Corporate Issuance Limits Moves In NY Session

TYM3 deals at 111-21, +0-01+, in line with levels seen late in the NY session

• Cash Tsys finished flat to 4bp richer across the major benchmarks, the curve steepened.
• Tsys firmed to session highs after the largest fall in Durable Good Orders since April 2020. Technical buying as TU moved off contract lows helped Tsys find a base pre-data.
• Strong Pending Home Sales print saw gains capped.
• A brisk pace of corporate issuance saw two way hedging across the curve limiting follow through in moves and Tsys respected narrow ranges late in the session.
• Fedspeak Fed Governor Jefferson defended the bank's 2% inflation target, noting a change could destabilise well-anchored inflation expectations, while highlighting the central bank's commitment to returning inflation to target.
• Retail Sales data from Australia provides the highlight in Asia-Pac. Further out we have Wholesale Inventories, and MNI Chicago PMI. Fedspeak from Chicago Fed President Goolsbee will also cross.