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Firmer On Wednesday, 2024 Rate Cut Expectations Extend

US TSYS

TYH4 deals at 112-29+, +0-04+, in line with late NY levels.

  • Cash tsys finished 5-10bps richer across the major benchmarks, the curve bull steepened.
  • Tsys were supported in the European session as a bid in Gilts, in lieu of softer than forecast UK CPI spilled over.
  • Pressure seen after the latest round of US data and a 20-Year Auction was reversed and Tsys firmed into the close as technical flows added a layer of support.
  • FOMC dated OIS now price ~140bps of cuts by November 2024.
  • The docket is thin in Asia today, further out we have Weekly Jobless Claims and the third read of Q3 GDP.

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