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Holding Lower

US TSYS

Tsys hold lower in the wake of the data, with TYZ4’s Tuesday low breached. Next support comes in just below prevailing levels at last Thursday’s low (113-24+).

  • Yields 2.5-4.0bp higher on the day, bear steepening following the data.
  • Little movement in Fed Funds futures since the data-driven adjustment, ~33bp of cuts priced for Sep, ~100bp of cuts showing through year end.
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Tsys hold lower in the wake of the data, with TYZ4’s Tuesday low breached. Next support comes in just below prevailing levels at last Thursday’s low (113-24+).

  • Yields 2.5-4.0bp higher on the day, bear steepening following the data.
  • Little movement in Fed Funds futures since the data-driven adjustment, ~33bp of cuts priced for Sep, ~100bp of cuts showing through year end.