Tsy Cheapening Applies Some Light Cross-Market Pressure

$IG supply-related pressure and perhaps some incremental weakness stemming from comments made by Atlanta Fed President Bostic (’24 voter) apply pressure to U.S. Tsys, meaning that EGBs are under some modest pressure on feedthrough. The belly Bund curve bear steepns, with benchmarks 2-4bp cheaper on the day, although the German bond futures contracts fail to retest their early session lows (just).

• BTP futures are negative on the day once again, while cash BTPs are cheaper across the curve, albeit with 10s holding onto some of their early tightening vs. Bunds, last ~2.5bp tighter on the day.
• Recent flow has seen some roll down and reduction of an existing RXN3 139.00/140.50 call spread position into the 136.50/137.50 call spread.