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Modestly Richer Overnight

US TSYS

A weaker USD, which was a result of the PBoC leaning against CNY weakness via its daily mid-point fixing mechanism, seemingly provided a very modest bid for the Tsy space during Asia dealing.

  • Cash Tsys run 1.-1.5bp richer across the curve.
  • TYU2 deals +0-02+ at 117-10+, at the top of a very narrow 0-04+ range, operating on volume of ~120K, with ~67K of that being roll related.
  • Thursday’s NY docket includes weekly jobless claims data, the second Q2 GDP print and the release of the Kansas City Fed manufacturing index. 7-Year Tsy supply is also due.
  • In the background, continued setup for the upcoming Jackson Hole symposium will also factor into price action, with the Fed’s hawkish musings setting the tone in recent weeks. We have suggested that a dovish Powell pivot on Friday is unlikely (see our full preview of that event here).
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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