A bid has become apparent during the early rounds of Asia-Pac trade, which would indicate a willingness on the part of the wider Asia-Pac cohort to fade Monday’s cheapening/a regional covering of shorts (or a combination of the two). This leaves cash Tsys 2.5-4.5bp richer across the curve, with intermediates leading the bid after that zone drove the cheapening on Monday.
- TYZ2 has added to the early uptick since the cash open, dealing 0-11 off its Monday base at typing, with volume already approaching 30K.
- E-minis sit over 0.5% better off, with the USD trading on the defensive in the G10 FX sphere, likely linked to the move in Tsys.
- Headline flow remains limited, at best.