Free Trial

Firm Off Session Lows After ISM Services Print


TYU3 deals at 113-31, +0-02+, in line with late NY levels.

  • Cash tsys finished 1-3bps richer across the major benchmarks yesterday, light bull steepening was observed.
  • Tsys firmed off session lows as May ISM Services were weaker than expected, printing its lowest level since December 2022.
  • The Prices Paid component dropped to its lowest level since May 2020, and the Employment component fell below 50 for the first time since December.
  • FOMC dated OIS price ~6bp hike into next week's meeting with a terminal rate of ~5.25% in July. There are ~25bps of cuts priced for 2023.
  • Tuesday's Asia-Pac session is headlined by the RBA's latest monetary policy decision, the bank is forecasted to hold the cash rate steady at 3.85%. Further out the data calendar is thin, Fedspeak from Cleveland Fed President Mester will cross.

To read the full story



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.