Bear Flattening In Early Asia Trade

Regional participants seem comfortable selling into Thursday’s bid during the early rounds of Asia-Pac trade, particularly in the front end of the Tsy curve (perhaps reaffirming confidence in a continued, expeditious round of Fed tightening), facilitating bear flattening, with the major Tsy benchmarks 0.5-2.5bp cheaper on the session. TYU2 last +0-06 at 119-03, operating within a limited 0-04+ range thus far. Macro headline flow has been limited with the Asia-Pac region left to digest Thursday’s richening, major news flow and the post-settlement downtick in e-minis (aided by Snapchat’s disappointing earnings update).