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US TSYS: Cautious Tone Ahead Of FOMC, China Evergrande News

US TSYS

TYH4 is trading at 111-07, + 06 from NY closing levels
After an initial quick spike in TYH4 this morning, futures have settled and are trading sideways giving back all that early move. There has been very little in way of reaction, after attack on Russian Oil tanker in the Red Sea and the weekend attack on US soldiers in Jordan near the border with Syria.

The upcoming FOMC decision on Wednesday looks to be keeping everyone on the sidelines, and cautious.

  • Cash bonds are trading unchanged to 0.3bp richer across the curve, 2y at 4.343% (-0.6) and 10y at 4.133% (-0.4).
  • China Evergrande headlines out earlier, as creditors were unable to reach an agreement on a restructure, pushing its share price to record low.
  • Data is light on tonight, with FOMC policy announcement on Wednesday the major focus.

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