Bid On Geopolitical Whispers & Perhaps Some Inflation Relief Via Little-Tracked Index

Tsys rally further without much in the way of meaningful headline flow crossing the wires. TYU3 breaches its early session peak before edging away from best levels to last print +0-05, while cash Tsys are 2.0-2.5bp richer across the curve.

• We would point to an article doing the rounds via The Messenger (we also are sceptical of the report given it is a source that we are not familiar with), which has noted that “U.S. government is preparing evacuation plans for American citizens living in Taiwan.”
• Elsewhere, the latest Adobe online inflation print revealed a 2.3% Y/Y decrease in May, the most significant decrease observed since the start of the COVID pandemic. Granted this isn’t usually a market mover but given the elevated level of inflation sensitivity in markets in recent times, along with some market participants flagging the dataset, we though we’d highlight it here.