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Meandering Ahead Of Latest Data

US TSYS

A sideways Asia session for Tsys leaves TYZ3 essentially flat, sticking to a tight 0-03+ range.

  • Cash Tsys are little changed to 1bp richer.
  • Chinese PMI data provided the major macro input in Asia, although did little for Tsys.
  • The most notable flow came in the form of a TU/UXY block steepener (+2.5K/-1.0K).
  • FOMC-dated OIS is little changed on the day, but off yesterday’s data-inspired dovish extremes. Terminal rate pricing shows at 5.45% come November, before ~50bp of cuts are priced through ~June ’24.
  • Eurozone CPI data and ECB speak present points of interest from further afield.
  • NY hours will see PCE, weekly jobless claims and the MNI Chicago PMI released.
  • Elsewhere, comments from Fed’s Bostic & Collins will cross (Bostic will speak in just under 1 hour).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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