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Richer On Tuesday, Follows Core Global FI's Lead

US TSYS

TYU3 deals at 113-11+, +0-01+, in line with late NY levels.

  • Cash tsys finished 3-4bps richer across the major benchmarks, light bull flattening was observed.
  • Tsys firmed through the European session in lieu of spillover from Gilts as pre-UK CPI positioning dominated flows.
  • Brief pressure came as US Housing Start and Housing Permits were firmer than expected, however a rally in Bunds facilitated an extension of early gains in tsys.
  • TY continues to consolidate and the contract remains in a downtrend. Support comes in at 112-12+, low June 14 and bear trigger. Resistance is at 114-00 high from June 13.
  • There is a thin docket in Asia-Pac today. Further out we have Mortgage Applications and Fed Chair Powell's semi-annual testimony to the House Services Panel. Also due to cross is Fedspeak from Chicago Fed President Goolsbee, and we have the latest 20-Year supply.

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