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Richer On Thursday

US TSYS

TYU3 deals at 112-31+, -0-02+, in line with late NY levels.

  • Cash tsys finished 4-13bps richer across the major benchmarks, the front end of the curve lead the bid.
  • Tsys extended gains after see-sawing the aftermath of the latest round of US data. PPI was softer than forecast , however weekly jobless claims declined.
  • The move higher in tsys came alongside DXY printing below 100 for the first time since April 2022 amid heavy risk-on flows.
  • Fedspeak from SF Fed President Daly noted that it's too early to declare victory on inflation, she also said she remains in wait and see mode.
  • Brief pressure was seen after the latest 30-Year auction, indirect take up fell with a below average bid/cover ratio observed.
  • A block seller in TU, 11.51k lots, helped cap gains late in the session.
  • There is a thin docket in Asia today, further out we have Terms of Trade and the latest UofMich consumer sentiment. Fedspeak from Gov Waller crosses shortly.

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