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Marginally Richer In Asia

US TSYS

TYU3 deals at 109-21, +0-12, a 0-08 range has been observed on volume of ~97k.

  • Cash tsys sit 1-2bps richer across the major benchmarks, light bull flattening is apparent.
  • Tsys have firmed off session lows in early dealing, there was no obvious headline driver and the moves was seen alongside e-minis erasing early losses.
  • Gains marginally extended as participants perhaps used yesterday's cheapening in TY to add fresh long positions/close out shorts.
  • FOMC dated OIS remain stable; a terminal rate of 5.40% is seen in November with ~70bps of cuts by July 2024.
  • UK Retail Sales headlines an otherwise thin docket on Friday.

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