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Tsys Off Lows, Heavy Issuance Weighed; SLOOS Lending Tightened

US TSYS
Just off late session lows, Tsys under deal-tied hedging pressure from heavier than expected corporate bond issuance today ($6B Merck 6pt and $2.25B Apple 5pt lead Monday's $20B+ issuance) on a mainly quiet session with London out for King Charles Coronation celebration.
  • Treasury futures traded lows following the release of the latest quarterly NY Fed Sr Loan Officer Survey (SLOOS) showed lending standards tightened across all sectors.
  • Not a big surprise, banks reported a further tightening of lending standards in commercial and industrial loans, small business credit as well as commercial real estate in the first quarter, according to the Fed's latest Senior Loan Officer Survey released Monday, likely reflecting the fallout from U.S. regional banking turmoil that led to a number of bank failures.
  • President Biden and House speaker McCarthy are expected to discuss the debt limit on Tuesday, while data focus is on CPI read for April on Wednesday and PPI on Thursday.

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