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Tsys Futures Slightly Lower, Trump & Musk Speaking

US TSYS
  • Tsys futures are a touch lower this morning, although ranges have been tight while volumes are low. TUU4 is -0-00¾ at 103-07⅝, while TYU4 is -0-01+ at 113-06.
  • The cash treasury curve has seen slightly better selling through the belly this morning, although yields are just 0.5-1bps lower.
  • Overnight at the treasury bill auctions buyers favored 3m bills over 6m bills due to increasing bets on Federal Reserve rate cuts. The 3m bills were sold at 5.07%, below the expected yield, while 6m bills were sold at 4.795%, slightly above expectations. The six-month auction saw a lower-than-average bid-to-cover ratio of 2.73.
  • Currently Trump & Musk are speaking live on X spaces, as of yet there has been no speak of policies.

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