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Firmer On EGB Lead, Albeit Lagging


Tsys have drawn light support from the bid flagged in EGBs (lagging European peers), sitting a little shy of best levels at typing.

  • ECB speak and Eurozone CPI have been the driving forces for bonds pre-NY, while activity in the European short-end was also noted from early London trade.
  • TYZ3 +0-03+, operating in a 0-07+ range, cash Tsys 1-2bp richer.
  • Atlanta Fed President Bostic reiterated his view that monetary policy is already restrictive enough to get inflation on track toward 2%, also stressing that he doesn't see the need for easing any time soon. He also noted that he would support further tightening if inflation or inflation expectations abruptly reverse course and start climbing.
  • FOMC-dated OIS hovers a little above yesterday’s dovish extremes, with terminal rate pricing showing at 5.45% come November, before ~51bp of cuts are priced through June ’24.
  • NY hours will see PCE, weekly jobless claims and the MNI Chicago PMI released.
  • Elsewhere, comments from Fed’s Collins will cross.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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