Asia Wakes Up To A BoE-Inspired Bid

TYZ1 A touch below its NY peak, last dealing -0-02+ at 131-07+.

• To recap, the BoE's choice to hold interest rates triggered widespread richening for core FI markets in early NY dealing, with the continued cross-market impact from major central bank policy cues evident. This resulted in an unwind of some of the recently embedded FOMC rate hike premium.
• This meant that benchmark Tsys across the cash curve finished the day 4-8bp richer, with 7s leading the rally as the belly outperformed on the aforementioned FOMC pricing dynamics.
• There isn't anything in the way of tier 1 risk events scheduled for Friday's Asia-Pac session, while NFPs will dominate the domestic docket on Friday. We will also hear from Fed's Quarles. Further afield, a raft of BoE speak will hit on Friday/over the weekend, which will certainly be worth watching after the recent messaging/inaction combination.