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TY Futures Look Through Early Lows

US TSYS

TYZ3 drifts through early London lows, alongside its major German & Gilt counterparts.

  • Technically, the Aug 29 low in the contract (109-28+) presents the next area of support. Last -0-11 at 110-07+
  • Cash Tsys sit 2.5-4.5bp cheaper, with 7s leading the way cheaper.
  • Moves in European/UK paper have been the dominant factor.
  • E-minis bouncing from worst levels may have applied some cross-market pressure, although it is hard to be sure after the early uptick in Tsy yields seemingly applied weight to e-minis.
  • Terminal policy rate pricing on the FOMC-dated OIS strip still shows a peak rate of 5.42-5.43% come November, before cuts to just above 5.00% come June ’24.
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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