Free Trial

Muted Start, FOMC Meeting Headlines Week

US TSYS

TYM3 deals at 115-11+, +0-05, in line with levels seen late on Friday in a muted start.

  • Cash tsys finished 6-11bps richer across the major benchmarks on Friday, the belly lead the bid.
  • Tsys firmed on Friday, the latest round of US March Core PCE in line with expectations printing its softest level since November 2022 but above the monthly rate consistent with a 2% inflation target.
  • Brief pressure was seen after the Chicago MNI PMI which printed its highest level since August 2022 however the index showed an eighth consecutive month of contractionary business activity.
  • FOMC data OIS price a ~20bp hike for this weeks FOMC meeting which headlines the week's calendar, with a terminal rate of ~5.10% in June. There are ~60bps of cuts priced for 2023.
  • There is a limited calendar in Asia-Pac today, China and Hong Kong are closed for the observance of national holidays and liquidity will be impacted. Further out we have the latest ISM Survey which headlines an otherwise thin calendar.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.