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Off Cheaps, Tight Ranges & Low Volumes Prevail, Fedspeak Eyed

US TSYS

Price action in Bunds, with feed through from BTPs, remains at the fore for Tsys in early European trade after Asia-Pac reaction to Friday’s developments and weekend news flow (headlined by apparent incremental positives in discussions surrounding the debt ceiling and a Biden-Congressional leadership meeting re: the matter being tabled for Tuesday) biased the space a touch cheaper pre-London. That leaves the major cash Tsys running little changed to 1bp cheaper across the curve, with TYM3 operating in the middle of a tight 0-06+ range on relatively light volume.

  • The latest Empire manufacturing survey and a raft of Fedspeak headline the NY docket.
  • On the latter, any reaction to Friday’s UoM inflation expectations readings (headlined by the fresh multi-year high in 5- to 10-Year print) will be eyed. FOMC dated OIS price a couple of bp of tightening for next month’s meeting, followed by just over 70bp of cuts by year end.
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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