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T-Notes Hold Monday's Gains As Fed MonPol Decision Draws Near

US TSYS

Risk-off feel drove U.S. Tsys higher Monday, as local equity benchmarks retreated ahead of Wednesday's monetary policy decision from the Fed (see our comprehensive preview for more details) & amid ongoing assessment of the threat to economic recovery posed by the Omicron coronavirus variant.

  • TYH2 last seen -0-01 at 130-26, in close proximity to yesterday's one-week high of 130-30+. Cash Tsy yields sit slightly lower (last 0.3-0.9bp) across the curve. Eurodollar futures trade unch. to -1.0 tick through the reds.
  • Domestic PPI report headlines the U.S. docket on Tuesday, with no debt supply due.

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