A Touch Flatter As Asia Lifts Tsys

Asia-Pac dealers have been happy to lift Tsys in early regional trade, with futures nudging higher as participants become more open to the prospect of a slower, data-dependent rate hike trajectory from the Fed (note that Powell didn’t take the idea of a 75bp hike in Sep completely off the table in his post-meeting press conference, but stressed data-dependence). That has resulted in contracts out to UXY ticking closer to their Wednesday highs after a bit of a pullback was observed ahead of the NY bell, while the longer end (US & WN) is moving away from Wednesday’s late cheaps Cash Tsys run 1.5-2.5bp richer, bull flattening after Wednesday’s post-FOMC twist steepening. There hasn’t been anything in the way of major macro headline flow to digest, leaving post-FOMC reaction front and centre thus far.