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Pare Losses On BANC-PACW Merger, Fed In View

US TSYS

TYU3 deals at 111-24+, +0-05, in line with late NY levels.

  • Cash tsys finished dealing ~1bp cheaper across the major benchmarks on Tuesday.
  • Tsys pared losses into the close as news of a merger between Banc of California and PacWest boosted risk sentiment late in the NY session.
  • Earlier cheapening pressure had been seen after a strong Consumer Confidence and House Prices readings as well as upward revisions to the IMF's global growth and core CPI forecasts.
  • The latest 5-Year auction tailed, an above average bid/cover ratio was observed however indirect take up fell.
  • In Asia-Pac today CPI data from Australia provides the highlight. Further out we have the latest monetary policy decision from the Fed headlines today's docket. The MNI preview is here.

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