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Marginally Richer On Monday

US TSYS

TYU3 deals at 109-21+, +0-01, in line with late NY levels.

  • Cash tsys finished dealing 1-4bps richer across the major benchmarks, light bull steepening was apparent.
  • In a data light session tsys firmed as technical flows, as participants have one eye on Friday's NFP prints, dominated. A mild risk on tone, as US Equities advanced and marginal pressure on the USD added a level of support.
  • Pre 2-Year auction hedging saw tsys marginally pare gains, before ticking higher into the close.
  • FOMC dated OIS remain stable, a terminal rate of ~5.50% is seen in November, there are ~55bps of cuts priced to July 2024.
  • There is a thin docket in Asia today, further out US Conference Board consumer confidence and Dallas Fed Services Activity. Fedspeak from VC Barr is due. We also have the latest 7-Year Supply.

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