Looking Lower Early On

Tsys continue to edge lower through early London trading, with the major benchmarks 2-4bp cheaper as intermediates lead the weakness.

• TY futures move a little further through Friday’s lows, last dealing -0-09+.
• A heavy start for Bunds, as well as confirmation of Japanese PM Kishida seeking a record sized FY24 budget, will be helping the move.
• Technically, the Aug 29 low in the contract (109-28+) presents the next area of support.
• FOMC-dated OIS show terminal policy rate pricing of ~5.425%, with cuts to ~5.00% priced through June ’24. That space is generally a little firmer on the session.
• Factory orders and final durable goods data will cross in NY hours.