Asia To Assess Latest Richening

T-Notes little changed at the re-open, last -0-01 at 132-23+.

• The curve ran flatter on Wednesday, with 2s little changed and 10+-Year paper richening by ~4.5bp come the bell. Continued talk of short covering did the rounds as the space firmed in pre- and early NY trade on Wednesday, with 10s testing their recent richest levels, while 30s briefly had a look through multi-month riches before working away from extremes. The latest round of 10-Year Tsy supply then triggered a fresh, albeit more modest, round of richening, as the auction stopped through WI by 1.0bp, with dealer takedown tumbling to ~5-Year lows & cover ratio pushing further above the recent averages. NY flow was headlined by a 20K block buy of TYU1, 9.5K block buy of FVU1 & mis-weighted TU/FV flattener (-7,485 vs. +7,392)
• There is nothing in the way of tier 1 risk slated for Asia-Pac hours, with Thursday's domestic focus falling on May's CPI print & 30-Year Tsy supply, in addition to weekly initial claims data, monthly real earnings and further afield, the latest ECB decision.