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Muted Start, Cheaper On Friday After Unemployment Rate Falls

US TSYS

TYM3 deals at 115-25+, unchanged from Friday's settlement level in a muted start to Monday's trade.

  • Cash tsys finished 5-15bps cheaper across the major benchmarks on Friday, the curve bear flattened.
  • Amid thin holiday volumes tsys were pressured in the aftermath of Friday's March NFP report. The unemployment rate ticked lower as Payrolls were marginally firmer than consensus and the participation rate ticked higher. Average Hourly Earnings were a touch softer than expected.
  • Fed dated OIS price ~18bp hike into the May meeting with the terminal rate at 5%. There are now ~60bps of cuts in 2023.
  • There is a thin data calendar in Asia-Pac today, liquidity will be impacted with Australia and New Zealand domestic markets closed for the observance of national holidays.

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