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Pressured After Powell, 30-Year Auction

US TSYS

TYZ3 deals at 107-13, -0-04, in line with late NY levels.

  • Cash tsys finished 8-15bps cheaper across the major benchmarks on Thursday, the curve bear steepened.
  • Tsys extended losses yesterday after the latest 30-Year auction was poor received by the market as the auction tailed.
  • Earlier in the session Chair Powell noted that the Fed won't hesitate to tighten if needed. Whilst participants interpreted Powell's remarks as hawkish they were very much in line with last week's post-FOMC press conference.
  • There was little reaction to the latest Jobless Claims which were close to expectations.
  • The RBA's SoMP headlines in Asia today, further out we have the latest UofMich Survey. There are a number of Fed speakers including Chair Powell who speaks on a panel at the IMF Conference.

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