Free Trial

Moderately Pressured On Wednesday

US TSYS

TYM3 deals at 115-14, -0-03+, in line with late NY levels.

  • Cash tsys finished 4-6bps cheaper across the major benchmarks on Wednesday.
  • Tsys firmed off session lows after reports surfaced that First Republic could face potential curbs on Fed borrowings as FDIC weighed the prospect of downgrading the bank.
  • Early on Thursday House Republicans passed legislation on Wednesday that would raise the US Debt Ceiling by $1.5tn in exchange for steep spending cuts. The Senate is expected to vote against the bill.
  • The recovery was aided by the latest 5 Year supply, the auction stopped through, an above average bid/cover ratio and indirect take up were observed.
  • Earlier in the session tsys were pressured as the USD firmed off session lows and e-minis also rose as PacWest had a significant number of new business accounts as its benefited from the collapse of SVB.
  • Pre-auction hedging ahead of the 5 Year supply also weighed.
  • There is a thin data calendar in Asia-Pac today. Further out we have Initial Jobless Claims and Advance read of US GDP. We also have the latest 7-Year Supply.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.