Another Round Of Fresh Cycle Cheaps

Cash Tsys saw fresh cycle highs in yields across the major benchmarks during Asia-Pac hours, with the cheapening aided by a couple of block sales in TY futures (-1.4K apiece) and spill over from weakness in the longer end of the JGB curve.

• Cash Tsys run 1.5-3.5bp cheaper across the curve, bear steepening into London trade. 10-Year Tsy yields have printed above 4.25% for the first time since ’08.
• TYZ2 is -0-06 at 109-05+, 0-02 off the base of its 0-11+ overnight range, on healthy volume of ~97K. The next level of meaningful technical support isn’t seen until 108-20, the 1.00 projection of the Oct 4-10-13 price swing.
• The space didn’t show much reaction to a BBG source report which suggested that “the Biden administration is exploring the possibility of new export controls that would limit China’s access to some of the most powerful emerging computing technologies,” only managing to register a modest bid in early Asia trade.
• Friday’s NY docket is thin, headlined by Fedspeak from Williams, Evans & Daly, ahead of the pre-FOMC blackout which goes into play this weekend.