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Muted Start, Curve Flattened On Friday

US TSYS

TYU3 deals at 109-21, +0-00+, in line with Friday’s late NY levels in a muted start to Monday’s session.

  • Cash tsys finished 1bp cheaper to 2bps richer across the major benchmarks on Friday. The curve twist flattened pivoting on 3s
  • On Friday tsys observed narrow ranges with little follow through on moves, the data calendar was light and there was little meaningful macro news flow.
  • Cross asset wise on Friday; S&P500 and BBDXY were little changed, WTI rose ~1%.
  • FOMC dated OIS remain stable, a terminal rate of 5.40% is seen in November with ~65bps of cuts by July 2024.
  • The data calendar this week is headlined by S&P Global Mfg and Services PMI on Wednesday and on Friday Fed Chair Powell speaks at the Jackson Hole Symposium.

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