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Richer On Friday

US TSYS

TYU3 deals at 113-05, +0-02+, a touch firmer in early dealing.

  • Cash tsys finished ~5bps richer across the major benchmarks.
  • Tys firmed on Friday after spillover from EGBs in lieu of weaker than expected European PMIs.
  • Gains extended as US Mfg PMI printed its lowest level of 2023 and weaker than forecast.
  • Fedspeak from Atlanta Fed President Bostic weighed as he noted he is not seeing elements of risk appearing in the economy. SF Fed President Daly said 50bps of further tightening is a reasonable projection but no decision has been made yet.
  • FOMC dated OIS price a terminal rate of 5.30% in November.
  • There is a light docket on Monday with on Dallas Fed Mfg Activity due. We also have the latest 2 Year supply.

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