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Double Auctions Headline

US TSYS
  • Cash Tsys see a modest rally after Friday’s bear flattening on prospects of higher rates for longer, but not before 2Y yields first touched fresh post-2007 highs in the European session with 3.5777%, possibly mild spillover from overnight/weekend hawkish ECB commentary. No data of note and the FOMC in blackout sees issuance headline today, with the double 3Y and 10Y auctions in focus before tomorrow's US CPI.
  • 2YY -2.0bps at 3.536%, 5YY -1.9bps at 3.416%, 10YY -1.1bps at 3.298% and 30YY -0.4bps at 3.443%.
  • TYZ2 trades 5 ticks higher at 115-29 on average volumes. It remains within Friday’s range but is still vulnerable, with support eyed at the new bear trigger of 115-13+ (Sep 7 low), clearance of which could open 114-26 (Jun 16 low).
  • Note issuance: US Tsy $41B 3Y notes (91282CFK2) at 1130ET, US Tsy $32B 10Y notes re-open (91282CFF3) at 1300ET
  • Bill issuance: US Tsy $42B 26W bills at 1130ET, US Tsy $54B 13W bills at 1300ET

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