Marginally Cheaper Early On

Cash Tsys search for clear direction early on, initially twist flattening, but that has moved into bear flattening, with the major benchmarks running little changed to 1.5bp cheaper at typing. TYU2 last deals -0-02 at 119-01, just above the base of a narrow 0-04+ range.

• There hasn’t been much to move the needle on the macro front, with San Francisco Fed President Daly (’24 voter) reiterating that her baseline for the September FOMC meeting is for a 50bp at present, although she remains data-dependent and wants to see next month’s labour market and inflation data before fully backing either a 50 or 75bp step, stressing there is more to do when it comes to the Fed’s fight against inflation.