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Rally Extends After Q4 GDP’s Goldilocks-Style Print

US TSYS

TYH4 is trading at 111-17+, +0-07+ from NY closing levels.

  • Cash bonds are dealing 1-3bps richer in today’s Asia-Pac session. News flow has been light, with local participants extending yesterday's rally sparked by a Goldilocks-style print for Q4 GDP.
  • Early next week, we have the next quarterly refunding announcement (QRA) from the Treasury, which will set out its plans for debt issuance over the next three months. The question of how much debt the US government needs to issue, and the strength of demand for that debt, has become increasingly important in the last year, and these QRAs have taken on extra significance.
  • Later today the US calendar shows Personal Income & Spending, PCE Deflator for December, Pending Home Sales and Dallas Fed Manf. Activity data.
  • The FOMC’s policy decision is due to be handed down next Wednesday.

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