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Light Twist Steepening Of Curve

US TSYS

Cash Tsys see a light twist steepening move vs. Wednesday’s close, with yields -/+1bp on the day.

  • TYZ3 coils in the lower end of yesterday’s range, last +0-03, firming a touch alongside Bunds.
  • A narrower than expected monthly trade surplus out of China (exports and imports weren’t quite as soft as expected) did little for Tsys.
  • Light downticks in e-minis and crude oil are looked through.
  • FOMC-dated OIS is little changed on the day, showing a terminal rate of 5.45% come November, before ~35bp of cuts are priced through June ’24. A quick reminder that FOMC-dated OIS finished yesterday a little shy of ISM services-inspired highs, but the move over the last coupe of months has seen a notable moderation in the easing priced into the space (the Nov ‘23/Jun ’24 OIS spread briefly showed below -80bp in mid-July).
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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