Back Bid After Pullback

A little bit of a pullback was seen in U.S. Tsys, as the space moved away from best levels, but a bid has come back in. Once again, we haven’t seen much in the way of overt headline flow to drive the moves. The 2- to 10-Year zone has printed through Wednesday’s yield troughs, with the more pronounced breaks coming in the front end of the curve, but the early Asia moves seem to be driven by the reaction to late NY dealing & post-FOMC March minute thoughts, as opposed to any fresh catalysts.

• Bull steepening remains intact, with the 5-Year zone now leading, firming by nearly 5bp on the day. TYM2 has failed to test best levels of the session on the latest round of richening and deals +0-13 at 121-03.