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US TSYS: Tsys Futures Steady, Focus On PPI Tonight

US TSYS
  • There has been very little happening in Tsys this session, with cash yields trading flat to 0.3bps lower. Futures are trading all within 
    Wednesday ranges, while volumes are below recent averages. TU is trading -00⅛ at 103-00⅞, while TY is currently trading unchanged at 110-22.
  • The 2yr is unchanged at 4.153%, while the 10yr is +0.2bps at 4.271%.
  • Fed fund futures are currently pricing in 24.7bps of cuts next week, up from 21.5bps prior to CPI. Pricing has just been bought forward slightly, with rate cut pricing cooling 3-5bps further out, currently the market expects a cumulative 83.5bps of cuts through to December 2025.
  • Focus tonight will be on PPI numbers with consensus for m/m PPI to remain in line with the prior month at 0.2%. 

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