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Firmer Through Early London Trade

US TSYS

Weakness in equities and the IFO-derived bid in Bunds has allowed Tsys to firm further during the London morning, leaving the major benchmarks running 4-6bp richer, with 5s outperforming. TYU3 has neared Friday’s peak, but bulls have failed to force a meaningful challenge thus far, with the contract +0-12, 0-00+ shy of session bests. FOMC-dated OIS prices a cumulative ~24bp of hikes over the next three meetings. A mild ~9bp of cuts is then priced by year-end, with a cumulative ~70bp of cuts showing through the Jun ’24 FOMC (vs. current terminal rate pricing).

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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