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Market Roundup: Tsys Still Reacting to EGBs

US TSYS

Support for Tsys evaporates last few minutes, coinciding with the BOE linker purchase operation -- actually driven by sale in Bunds that broke technical support around 136.0 that triggered sell stops below the figure.

  • Tsys gained overnight after the BoE Linkers will now be eligible in the daily gilt purchase operations for the remainder of this week: up to GBP5bln linkers will be eligible for purchase (14:15-14:45BST) and GBP5bln of long conventional (15:15-15:45BST - an hour later than previous operations). Corporate bonds sales scheduled for today and tomorrow "will not take place".
  • Still well off opening highs, futures rebounding after 30YY tapped 3.9577% high for an inside session range amid robust midmorning volumes: TYZ2>825k, USZ2>150k. Market settling in ahead $57B 13W, $45B 26W bill auctions at 1130ET, $40B 3Y Note auction (91282CFP1) at 1300ET.
  • Cleveland Fed Mester scheduled to speak at the Economics Club of NY at 1200ET while Tsy Sec Yellen will be interviewed on CNBC at 1500ET.

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