Firmer On Equity & Crude Oil Weakness

Weakness in crude oil futures and an extension lower in e-mini futures around the time of the NY cash open helped Tsys to find a base before firming in recent trade, with the major cash benchmarks sitting 3-6bp richer on the day, as the belly/intermediate zone continues to outperform the wings. The move in oil is allowing breakevens to tighten a touch, feeding through into Tsys, while a weak start for regional banks has been noted within the equity sphere. Swap spreads have also narrowed a touch after yesterday’s corporate issuance-related widening, adding a further leg of support for Tsys. TYM3 trades through its European morning peak. JOLTS and factory orders data crosses imminently.