Free Trial

Lightly Richer, Not Yet Building On TYU3 Resistance Clearance

US TSYS
[Correction to earlier bullet which erroneously showed Wednesday's docket for today].
  • Cash Tsys trade lightly richer, led by the belly, as they lean on EGBs for support in a move that started before but has since been further helped by a sharp decline in ECB consumer inflation expectations. The front-end trades just within yesterday’s post-ISM service miss highs but 5s and 10s have pushed through.
  • 2YY -1.6bp at 4.449%, 5YY -2.3bp at 3.795%, 10YY -2.1bp at 3.662%, 30YY -1.2bp at 3.871%. 2s10s are within recent ranges at -78.5bps.
  • TYU3 trades 7+ ticks higher at 114-04 off a high of 114-06+ after clearance of yesterday’s 114-03+ has failed to generate meaningful momentum. Nevertheless, that break next opens resistance at 114-22 (20-day EMA) after which lies 115-00 (Jun 1 high).
  • Cumulative volumes are in line with recent averages at 260k.
  • No data releases or Treasury supply scheduled today for a very light docket.

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.