Much Of Early Rally Consolidated, Fed Pricing Little Changed

Tsys have consolidated the bulk of the early London rally that came alongside the bid in global equity benchmarks and weakness in the USD, even with the broader USD now off worst levels.

• Wider macro headline flow remains limited on the day, save confirmation of an impending trip by U.S. Commerce Sec. Raimondo to China, leaving cross-market moves at the fore.
• TYU3 is now +0-04, trading just off session bests after Asia-Pac trade saw bears push the contract to within touching distance of major technical support.
• Cash Tsys are 1.5-3.0bp richer, with the wings lagging at the margins.
• FOMC-dated OIS show a terminal policy rate of ~5.45%, come November, with ~46bp of cuts then showing through June ’24, little changed on the day.
• The NY data docket consists of existing home sales data and business surveys from both the Philadelphia & Richmond Feds.
• We will also see Fedspeak from Bowman, Goolsbee & Barkin.