Free Trial

Pressured On Monday On US Data, Corporate Hedging


TYM3 deals at 114-18, +0-02, in line with late NY levels.

  • Cash tsys finished 12-15bps cheaper across the major benchmarks on Monday.
  • Tsys were pressured through Mondays session, the latest ISM Manufacturing print was firmer than expected and the Prices Paid component reflecting a bounce from the sharp fall in commodity prices last year.
  • Rate lock hedging ahead of a brisk pace of corporate issuance saw tsys extended losses.
  • Stabilizing sentiment after JP Morgan agreed to acquire First Republic also added a layer of pressure.
  • FOMC dated OIS have a 25bp hike priced in for Wednesday's meeting, with a terminal rate of ~5.15% in June. There are ~55bps of cuts priced for 2023.
  • The latest monetary policy decision from the RBA provides the highlight in Asia-Pac today, the bank is expected to hold the cash rate at 3.60%. Further out we have JOLTS Job opening, Factory and Durable Goods Orders.

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.