- Cash Tsys have bear steepened overnight. The front end is somewhat pinned with Fed rate expectations little changed ahead of a heavy data docket including retail sales, but the longer end sells off in a move following core EU FI in part from stronger UK wage growth and a stimulus angle from the PBOC cutting two policy rates and officials mulling support for the property market.
- 2YY +0.2bp at 4.969%, 5YY +3.2bp at 4.392%, 10YY +4.1bp at 4.233%, 30YY +3.8bp at 4.327%. 2s10s remains within yesterday's range at -73.5bps.
- TYU3 trades 10+ ticks lower at 109-21+ having just lifted off a low of 109-20+ that pushed through the bear trigger at 109-24 (Aug 4 low) after which lies 109-14 (Nov 8, 2022 low). Volumes are higher than average at a cumulative 290k.
- Data: Retail sales Jul (0830ET), Terms of trade Jul (0830ET), Empire mfg Aug (0830ET), Business inventories Jun (1000ET), NAHB housing index Aug (1000ET), TIC Flows Jun (1600ET)
- Fedspeak: Kashkari moderated conversation, w/ audience Q&A (1100ET).
- Bill issuance: U.S. To Sell $60B 42-Day CMB – 1130ET
Copyright 2024
