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Twisting Flatter

US TSYS

The cash Tsy curve has twist flattened in early dealing this week, with the front end of the curve likely showing some regional Asia-Pac reaction when it comes to Friday’s front end/belly-led cheapening, while the 7+-Year zone of the curve is perhaps a little better bid on the risk negative factors we have outlined in the weekend news (namely softer than expected Chinese PMIs & worry re: various areas of geopolitical tension). That leaves cash Tsys 1bp cheaper to 2bp richer across the curve, pivoting around the 5-Year point. TYM2 is -0-08 at 118-29, just shy of the peak of the contract’s 0-07 early session range.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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