Free Trial

Outperformance In The Belly On Monday


Cash Tsys were 10-22 bp richer across the curve on Monday, with the 5- to 7-Year zone leading.

  • The UK fiscal u-turn re: tax relief for high earners, continued worry re: European banks and Asia’s willingness to fade Friday’s sharp round of weakness into month-/quarter-end fed into the bid pre-NY.
  • A softer than expected ISM mf’ing survey then propelled the space higher through the early rounds of NY trade, before the details of the latest BoE Gilt buyback operation provided some weight, resulting in a pullback from firmest levels of the session.
  • A notable block buy in FV futures (+19K) aided the post-ISM rally, while a block sale in UXY futures (-3.5K) helped the move away from best levels.
  • NY Fed President Williams stressed that inflation is the number one problem for the Fed, while flagging a way to go when it comes to tightening, highlighting the median dot in the Sep for ’23 (ultimately sticking with the central Fed message).
  • The latest RBA monetary policy decision headlines the Asia-Pac docket on Tuesday, although holidays in Hong Kong & China will limit wider liquidity during overnight trade.
  • Tuesday’s NY docket will be headlined by final durable goods readings, JOLTS job opening data and Fedspeak from Jefferson, Williams, Mester, Logan & Daly
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



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.