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Tsys Futures Steady Early As Cash Trading Resume

US TSYS
  • Treasury futures have opened little changed this morning, while cash trading resumes. TU opened at 102-03⅛, we now trade up a touch at 102-03⅝, while TY is trading at 109-28+.
  • Cash treasury curve has continued the steepening theme that has occurred since the Presidential Debate, with yields flat to 1.5bps higher, the 2y is unchanged at 4.706%, 5y is +0.5bps at 4.329% while the 10y is +1bps at 4.368%
  • US OIS is now trading a 71% chance of a rate cut in September
  • Earlier, the NYT reported that 'many wealthy Democratic donors are trying to take matters into their own hands' and have 'undertaken a number of initiatives to pressure Mr. Biden to step down'.
  • Later today we have Non-Farms with consensus at 190k down from 272k prior, with expectations the unemployment rate will hold at 4%.

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