November 19, 2023 23:03 GMT
Softer Start, Curve Flattens On Friday
TYZ3 has opened dealing at 108-19+, -0-04+, a touch below Friday's closing levels. The space is marginally pressured as negotiations between Israel and Hamas for the release of hostages have re-started after a pause (BBG).
- On Friday cash tsys finished 4bps cheaper to 2bps richer across the major benchmarks, the curve twist flattened pivoting on 10s.
- Firmer than forecast Housing starts and Building Permits saw tsys marginally pressured in the NY session on Friday, the move lower in Tsys came alongside pressure on US Equities and a bid in the USD.
- Earlier in the session TY firmed through the 109-00 handle as technical flows and spillover from a rally in Gilts added a level of support.
- A reminder that this week US markets are closed on Thursdays for the Thanksgiving Holiday, with trading hours reduced on Friday.
- The FOMC meeting minutes headlining the docket this week, we also have flash PMIs for November due to cross on Friday. Today we have the latest 20-Year Supply.
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