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Modest Asia Rally Consolidates

US TSYS

The Asia-Pac rally in Tsys consolidates.

  • Bullish inputs from gilts on the back of dovish BoE speak and bearish inputs from a firmer-than-expected German ZEW survey noted in early London hours.
  • TYM4 comfortably within yesterday’s range, last +0-06+ at 110-19 (110-12+ to 19+ range). Volume running at a relatively average ~205K.
  • Cash Tsy yields are 2.5-3.5bp lower across the curve.
  • FOMC-dated OIS shows ~82bp of ’24 cuts, ~20bp of cuts priced through June.
  • A reminder that the inflation components/rhetoric in yesterday’s S&P Global PMI and Philly Fed surveys helped Fed pricing off yesterday’s dovish extremes.
  • Fedspeak from Powell, Jefferson, Bowman, Barr & Bostic will be eyed ahead of the weekend.
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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