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Weaker, Sitting Just Above Session Cheaps, Looming Supply Surge Weighs

US TSYS

TYU3 is sitting near Asia-Pac cheaps at 113-19+, -7+ from NY closing levels, after reaching a low of 113-17+.

  • Cash tsys are 0.9-3.6bp cheaper across benchmarks in Asia-Pac trade, but 1.0 to 1.5bp richer than session cheaps.
  • With the Asian calendar light, local participants have likely been on headlines watch as they digest the sharp post-payrolls sell-off on Friday.
  • US Treasury yields seem to be under pressure due to the imminent risk of increased debt issuance following months of disruption, as President Biden signed legislation to suspend the federal debt ceiling. (link)

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