Free Trial

Futures Firmer As Cash Trading Resumes After Memorial Day

US TSYS

TYU3 is currently trading at 113-14+, +9 from NY closing levels on Friday, as the cash tsy curve twist flattens at the open of Asia-Pac trade after the Memorial Day holiday. Yield changes range from +3.3bp (2-year) to -4.6% (20-year).

  • As trading resumes, investors will be closely monitoring the progress of a debt-ceiling bill after a bipartisan agreement was reached on Saturday. The ultimate challenge lies in securing support from lawmakers representing various political ideologies.
  • Traders will also face increasing expectations that the Federal Reserve is poised to raise interest rates once more, potentially in June or July.
  • Bond investors will closely monitor the effects of an expected surge in T-bill issuance as the US Treasury aims to rebuild its cash reserves. The impact of this increased issuance on the broader bond market and the subsequent drain on liquidity from the banking system will be of particular interest to investors.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.