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Firms After Latest US Data

US TSYS

TYZ3 deals at 110-26, little changed from Tuesday’s settlement level.

  • Cash tsys finished 4-11bps richer across the major benchmarks, the curve bull steepened.
  • Tsys firmed after the latest round of US data, JOLT Job Openings were softer than forecast and August Consumer Confidence printed at 106.1, a print of 116.0 had been expected.
  • Gains marginally extended after the 7-Year Auction stopped through, a strong bid/cover ratio and indirect take up were observed.
  • Terminal rate pricing, observed via FOMC dated OIS, has ticked lower and now sits at ~5.45%. There are ~65bps of cuts priced to July 2024.
  • In Asia today Australian CPI data provides the highlight. Further out we have US GDP, wholesale inventories and pending home sales.

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