Futures Pressured In Early Dealing

TYM3 deals at 115-29+, -0-06, as futures are pressured in early dealing alongside a bid in e-minis. Asia-Pac participants are seemingly focusing on a BBG source report released on Friday which suggested that “U.S. authorities are considering expanding an emergency lending facility for banks in ways that would give First Republic Bank more time to shore up its balance sheet, according to people with knowledge of the situation.” Also note that the weekend saw CNBC sources note that “the surge of deposits moving from smaller banks to big institutions including JPMorgan Chase and Wells Fargo amid fears over the stability of regional lenders has slowed to a trickle in recent days.”

• Cash tsys finished 3-7bps richer on Friday across the major benchmarks.
• Tsys firmed through the European session on Friday as pressure on European banks led by Deutsche Bank saw safe havens bid. The surge in Foreign and International Monetary Authority repo facility, which rose to $60bn from zero the week prior, also supported the bid.
• 2 Year Yields fell to their lowest level since September 2022 before moderating in the NY session.
• Tsys moderated gains in the NY session as US equities firmed. Stronger than expected flash PMI data saw the losses marginally extend.
• Minneapolis Fed President Kashkari noted yesterday recent bank turmoil has increased the risk of a US recession but it was too soon to judge what that means for monetary policy.
• There is a thin data calendar in Asia Pac today. Further out Dallas Fed Manf. Activity headlines an otherwise thin docket. The latest 2 Year supply is also due.