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Marginally Pressured In Asia

US TSYS

TYU3 deals at 112-29+, -0-04, a 0-07+ range has been observed on volume of ~80k.

  • Cash tsys sit flat to 1bp cheaper across the major benchmarks, light bear flattening is apparent.
  • Tsys were pressured in early dealing as an offer in JGBs spilled over into the wider space.
  • Fedspeak from Gov Waller this morning noted that he sees two more 25bp increases this year and that policy will need to remain restrictive for some time. Waller also said that September is a live meeting for rate policy.
  • The move lower didn't follow through and tsys dealt in a narrow range for the remainder of the session after marginally paring losses.
  • There is a thin docket in Europe today, further out we have Terms of Trade and the latest UofMich consumer sentiment. A reminder that the Fed blackout period starts at midnight EDT today.

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