Yields Firm On Tuesday

TYZ3 deals at 110-00+, +0-02, in line with late NY levels.

• Cash tsys finished ~8bps cheaper across the major benchmarks.
• Tsys were pressured through the NY session as rate locking/hedge unwinds tied to ~$37bn in corporate issuance weighed.
• Losses marginally extended after the latest round of US Data, July Factory Orders were a touch better than forecast although still printed in negative territory.
• There was mixed Fedspeak yesterday, Gov Waller noted that last week's data allows the Fed to proceed carefully with no need to do anything imminently.
• Cleveland Fed President Mester was a touch hawkish, noting that the Fed may need to lift rate higher on the back of stronger than expected data and upside inflation risks.
• In Asia-Pac today Australian GDP data provides the highlight. Further out we have Trade Balance and ISM Services Index, the Fed's Beige Book is also released. Fedspeak from Boston Fed President Collins and Dallas Fed President Logan crosses.