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Light Gains Seen Pre-NY, Off Best Levels

US TSYS

Tsys consolidate the bulk of their EGB- & oil-related gains that we fleshed out earlier, leaving cash Tsys 1.5-2.5bp richer, with 5s leading the bid. TYU3 trades 0-03 shy of its peak, last +0-07 on the session, after the break through yesterday’s high failed to generate meaningful momentum.

  • London morning Tsy flow has been dominated by a 10K lift of the FVN3 110.00 calls.
  • FOMC-dated OIS last show 6bp of tightening for this month’s meeting and a cumulative 18bp through July, before pricing in ~32bp of cuts by year end, as outright implied rate pricing on the strip ticks lower on the day
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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