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Twist Flattening Ahead Of Thin Docket In CPI's Shadow

US TSYS
  • Cash Tsys have twist flattened overnight with the front end extending Friday’s net push cheaper whilst the 10Y pushes richer after a refusal when testing the 3.75% level.
  • A very thin docket consisting only of Fed Governor Bowman (voter) speaking on banking supervision at 0800ET before bill issuance likely sees headlines and flow dictate the session, all with tomorrow’s US CPI in mind.
  • 2YY +1.5bp at 4.532%, 5YY +0.7bp at 3.930%, 10YY -0.2bp at 3.730% and 30YY -1.6bp at 3.800%. 2s10s of -80bps remains off Thursday’s fresh multi-decade low of -86bps.
  • TYH3 trades just half a tick higher at 112-22+ on below average volumes, having poked through to a new low of 112-18+ that now sits above trendline support at 112-14+ drawn from the Oct 21 low.
  • Bill issuance: US Tsy $60B 13W, $48B 26W bill auctions (1130ET)

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