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Tsy Supported as Equities Make New All-Time Highs

US TSYS
Back to/near midmorning highs after the bell. Take away the quarterly roll volume in Tsys and volumes were pretty light for the late summer session (TYU<950k; >172k TYU/TYZ volume). Meanwhile , equities mad new all-time highs: ESU1 tapped 4485.75 in early noon trade.
  • Little/no react from rates to weaker than estimated Markit US PMIs (Mfg 61.2 vs. 62.0 est; Srvc 55.2 vs. 59.2 est) tempered by better than expected Existing home sales (+2.0% TO 5.99M SAAR).
  • Focus on Friday's now remote economic symposium hosted by KC Fed in Jackson Hole Wyoming.
  • Cross-asset positioning, no deal-tied flow but some early pre-auction short sets ahead first leg Tsy supply w/$60B 2Y note auction Tuesday reported.
  • Reminder, Sep Tsy options expire Friday while Dec underlying futures takes lead quarterly position from Sep on Aug 31 (first notice).
  • The 2-Yr yield is up 0bps at 0.2242%, 5-Yr is down 1bps at 0.7721%, 10-Yr is unchanged at 1.255%, and 30-Yr is up 0.5bps at 1.8735%.

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