Eyes On The Exits

TYH3 had a brief look below Thursday’s low at the re-open, but the move was short and limited, leaving the contract hovering around late NY levels, -0-03 at 113-14+.

• Cash Tsys were 2-6bp cheaper on Thursday, with bear flattening in play.
• Firmer than expected final Q3 GDP data added momentum to the pullback from best levels seen in pre-NY hours, with volume thinning out into the Christmas break. Slightly lower than expected initial and continuing claims data was also noted.
• Equities shunted lower before bouncing off of worst levels, with the S&P 500 shedding around 1.5% come the bell.
• Japanese CPI data headlines a limited Asia-Pac docket, with PCE readings providing the focal point of Friday’s NY session. These data releases have the potential to create bursts of market activity, although the thinner liquidity backdrop and time of the year will limit risk taking capabilities/desire.
• Tsys will be subjected to curtailed trading hours ahead of the Christmas weekend (see earlier bullet for more details).