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Futures Marginally Pressured In Early Trade; CPI & FOMC Meeting Headline Week

US TSYS

TYU3 deals at 113-07+, -0-05, despite the absence of any obvious headline driver TY is marginally pressured in early dealing on Monday. Friday’s lows remain intact for now.

  • Cash tsys finished 8bps cheaper to 1bp richer on Friday, the curve twist flattened pivoting on 30s.
  • Tsys were pressured through Friday's session, in a data light session, upcoming issuance weighed on the short end of the curve.
  • Losses were briefly pared as spillover from Canadian bonds in lieu of a weaker than expected Canadian unemployment number saw tsys briefly firm, however pressure extended through the NY session and tsys registered fresh session lows.
  • FOMC dated OIS price ~8bp of hikes into Wednesday's meeting, a terminal of 5.30% is seen in July with ~25bps of cuts in 2023.
  • The data calendar is thin on Monday. The week's docket is headlined by tomorrow's CPI print before the FOMC rate decision on Wednesday. We have the latest 10-Year Supply today.

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