Free Trial

Light Bull Steepening Ahead Of NY Trade

US TSYS

Tsys have ticked away from session cheaps alongside EGBs, leaving the major benchmarks flat to 3bp richer as the curve bull steepens a little (after yesterday’s post-services ISM flattening).

  • TYZ3 last prints +0-06+, ticking away from yesterday’s base.
  • A downtick for crude oil futures and pre-market moves lower for tech giant Apple will have aided the light bid in Tsys.
  • News of a benchmark $ mandate from Slovenia has done little for the space in recent trade.
  • FOMC-dated OIS still shows a terminal policy rate of ~5.45%. A little over 36bp of cuts is then priced through June ’24, as that contract consolidates a little below yesterday’s high.
  • Easing priced into the strip remains comfortably shy of recent extremes after the Nov ‘23/Jun ’24 spread printed below -80bp in July.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.