A Little Shy Of Tuesday’s Richest Levels

A fairly mundane round of Asia-Pac trade for Tsys saw weaker regional equity indices (on the back of recession fear & worry re: the COVID situation in China) and an early blip higher in oil after a heavy Tuesday session (with the bounce aided by Russian court rulings re: loading at one of its major ports) drawing most of the attention. The latter move moderated as we worked through overnight trade, likely aided by the former.

• TYU2 has stuck to a 0-07+ range on sub-standard volume of 75K, last dealing -0-04+ at 119-25, while cash Tsys run 2-3bp cheaper across the curve. Yields hold away from Tuesday’s lows after a late NY pullback which came alongside a recovery in U.S. equities post the European cash close (the S&P 500 finished +0.2% on Tuesday).
• There hasn’t been anything in the way of major macro news, nor meaningful market flow to flag since the Asia-Pac re-open, with the UK political situation dominating the headlines.
• Wednesday’s NY calendar is headlined by services ISM data and the release of the minutes from the most recent FOMC decision. We will also get weekly MBA mortgage apps, final services PMI data and the latest JOLTS job opening print. The release of the FOMC minutes from the June meeting will be bolstered by Fedspeak from NY Fed President Williams.