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Futures Cheapen After Debt Ceiling Passes The House

US TSYS

TYU3 is currently trading at 114-09, -6 from NY closing levels after the US House of Representatives voted to lift the US debt ceiling by 314-117. TYU3 reached a high of 114-16 in early Asia-Pac trading.

  • The bill now goes to the Democrat-led Senate and President Biden has urged it to pass the agreement as soon as possible.
  • In terms of the Senate, Bloomberg is reporting that several senators have said that they won’t allow the legislation to pass quickly.
  • US tsys have softened after the announcement with the early Asia-Pac session richening of 1-3bp turning into a 1-2bp cheapening across the curve out to the 10-year.

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