Free Trial

Yields Edge Higher, Debt Talks Resume

US TSYS

TYM3 deals at 113-15, unchanged from yesterday's settlement level.

  • Cash tsys finished 3-5bps cheaper on Monday across the major benchmarks.
  • With a light data calendar and no fresh break through in the debt ceiling talks tsys ticked lower through Mondays session.
  • Minneapolis Fed President Kashkari reiterated comments from the weekend that the June rate decision is a close call. Atlanta Fed President Bostic said he's comfortable waiting to see how the economy reacts to rate hikes before any more tightening, whilst St Louis Fed President Bullard said he's thinking of two more rate hikes this year.
  • Debt ceiling talks between President Biden and House Leader McCarthy are set to begin shortly.
  • FOMC dated OIS price a terminal rate of ~5.20% in July with ~50bps of cuts scheduled for 2023.
  • PMI data from Australia and Japan headline in Asia. Further out we have Philadelphia Fed Non-Mfg Activity, New Home Sales and Services & Mfg PMIs. Fedspeak from Dallas Fed President Logan will cross. We also have the latest 2-Year supply.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.