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Yields Tick Higher After 7-Year Auction

US TSYS

TYH4 deals at 112-30, +0-01+, in line with late NY levels.

  • Cash tsys finished 3-5bps cheaper across the major benchmarks, the belly lead the cheaps.
  • Tsys ticked lower after the latest 7-Year Auction was weak, a 1.9bp tail was observed despite an average bid/cover ratio.
  • Earlier in the session tsys remained well within recent ranges, marginal pressure was seen as technical flows weighed.
  • There is a thin docket in Asia today, further out we have MNI Chicago PMI which concludes the data slate for 2023.

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