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Marginally Cheaper In Asia

US TSYS

TYU3 deals at 113-11, -0-01+, with a 0-06+ range observed on volume of ~38k.

  • Cash tsys sit flat to 1bp cheaper across the major benchmarks, light bear flattening is apparent.
  • Tsys have ticked away from session highs dealing in a narrow range for the Asian session, perhaps the proximity to tomorrow's CPI print and Wednesday's FOMC decision has kept local participants on the sidelines.
  • At the open, despite the absence of any headline driver, TY gapped lower before finding support ahead of Friday's low and pared losses.
  • FOMC dated OIS price ~8bp of hikes into Wednesday's meeting, a terminal of 5.30% is seen in July with ~25bps of cuts in 2023.
  • There is a thin data calendar on Monday, we have the latest 3- and 10-Year Supply. Further out the weekend is headlined by the aforementioned CPI print tomorrow and Wednesday's FOMC rate decision.

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