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Marginally Cheaper Start, TY Breaches Monday's Low

US TSYS

Cash tsys have opened dealing ~2bps cheaper across the major benchmarks. Local participants are perhaps looking ahead to Fed Chair Powell's speech at the Jackson Hole Symposium on Friday, a Bloomberg Market Pulse Survey noted that 80% of those surveyed said the speech will reinforce the message of a hawkish hold. TYU3 deals at 108-29+, -0-05, contract has breach Monday's lows printing a fresh cycle low.

  • The below chart shows the rise in 10-Year TIPS, we now sit a touch below 2% having risen from below -1% in late 2021 (Source: Bloomberg/MNI).

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