Asia Tentatively Buys The Fed Dip

Regional participants have shown some tentative dip buying interest with the major cash Tsy benchmarks running little changed to ~2bp richer on the day, as 5s lead the bid, resulting in some light bull steepening of the curve after yesterday’s post-Fed twist flattening. Tsys did recover from worst levels of the day post-FOMC (as fleshed out earlier), while the fact that Ukrainian President Zelenskiy has labelled the ongoing Russia-Ukraine negotiations as “difficult” has provided some modest support for the space. TYM2 is moving to fresh session highs at typing, last +0-06+ at 124-14, operating within a 0-10 range thus far.