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Coming up in the Asia-Pac session on Monday:

MNI

Coming up in the Asia-Pac session on Monday:

USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

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Softer Start (Updated)

US TSYS

Tsys have come under modest pressure during early trade this week, with Asia-Pac participants willing to undertake some light selling even as e-minis nudge lower on the previously outlined risk-negative factors (soft Chinese economic data released over the weekend and bubbling Sino-U.S. tensions). TYU2 last deals -0-04 at 121-00+, 0-00+ off the base of its early 0-05+ range, while cash Tsys run 1-3bp cheaper across the curve, with the front end leading the cheapening. Eurodollar futures are 1.0-3.5bp cheaper through the reds, also bear flattening.

  • Weekend comments from Minneapolis Fed President Kashkari (’23 voter) seem to be the key driver for the early weakness in Tsys. As a reminder, he stressed the Fed is a long way from where it needs to be in its fight against inflation, flagging his surprise re: the market’s interpretation of the central bank’s language. A reminder that Kashkari has historically been one of the more dovish Fed voices.
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Tsys have come under modest pressure during early trade this week, with Asia-Pac participants willing to undertake some light selling even as e-minis nudge lower on the previously outlined risk-negative factors (soft Chinese economic data released over the weekend and bubbling Sino-U.S. tensions). TYU2 last deals -0-04 at 121-00+, 0-00+ off the base of its early 0-05+ range, while cash Tsys run 1-3bp cheaper across the curve, with the front end leading the cheapening. Eurodollar futures are 1.0-3.5bp cheaper through the reds, also bear flattening.

  • Weekend comments from Minneapolis Fed President Kashkari (’23 voter) seem to be the key driver for the early weakness in Tsys. As a reminder, he stressed the Fed is a long way from where it needs to be in its fight against inflation, flagging his surprise re: the market’s interpretation of the central bank’s language. A reminder that Kashkari has historically been one of the more dovish Fed voices.