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Marginally Cheaper On Tuesday, FOMC On Tap

US TSYS

TYZ3 deals at 150-29+, -0-08, in line with late NY levels.

  • Cash tsys finished dealing ~3bps cheaper across the major benchmarks.
  • Tsys ticked lower through the NY session yesterday; firm Q3 employment costs, the lingering impact of the US Tsy Issuance and position squaring ahead of this evening FOMC rate decision weighed.
  • Earlier in the session spillover from EGB's, in lieu of soft Eurozone GDP and CPI saw Tsys extend Asian gains.
  • FOMC dated OIS price no change in today's meeting, a terminal rate of ~5.45% is seen in January with ~55bps of cuts by Sep 24.
  • China's Caixin Mfg PMI provides the highlight in Asia. The aforementioned FOMC rate decision headlines today's docket. We also have US construction spending, ISM Manufacturing, job openings and light vehicle sales.

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