Marginally Cheaper Ahead Of NY Hours

Cash Tsys are 1-2bp cheaper on the day, with some fresh, modest weakness in European & UK peers seeing no real feed through ahead of the NY session.

• Some light pressure for Bunds helped push TY futures through Asia-Pac lows as Europeans filtered in earlier, although initial support at 109-03 remains untested.
• That came after a break of Friday’s low saw selling extend a touch in Asia.
• Contract last -0-06, volume curtailed by a Japanese holiday which kept cash markets closed until London hours.
• Consumer dynamics surrounding the restart of student loan repayments and economic feedthrough from the UAW strike continue to generate interest.
• Lower-tier data and Bill supply is due in NY hours on Monday.
• Wednesday’s FOMC decision, SEP & post-meeting press conference (no change expected by an overwhelming majority in the BBG survey, while markets indicate the same) presents the domestic focal point for participants this week.
• A weekend survey of academic economists, sponsored by the FT, saw most suggest that the Fed will deploy at least one further rate hike in the current cycle, while over 40% pointed to two or more further rate hikes.