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Tsys Little Changed Early, Japan's 40y Auction the Focus In Asia

US TSYS
  • It has been a subdued start to cash trading in Asia, yields are +/- 0.5bps with a slight bear-steepening theme occurring, the 10y yield is trading at 4.254% after trading at a low of 4.15% on July 17th.
  • Treasury futures are little changed today, TYU4 trades at 110-24 just above initial support at 110-22 (20-day EMA)
  • A Reuters poll released earlier shows Kamala Harris ahead of Trump for the Presidency 44% to 42%, while the betting odds at PredictIt have Trump at 55% down 4pts, while Kamala is trailing with a 46% chance up 2pts.
  • Earnings for the "Magnificent Seven" kicked off earlier and disappointed the market after Alphabet said investors will be to be patient to see strong results from AI, while Tesla's profit missed estimates, next up we have Microsoft on July 30th.
  • There is little on the Asia calendar today with the focus just on Japan's 40y auction.

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