Block Flow Applies Light Pressure Overnight

Cash Tsys run 0.5-2.0bp cheaper across the curve into London hours. Meanwhile, TYZ2 sits -0-02 at 112-02, 0-01+ off the base of a narrow 0-06+ range.

• Ranges were contained, with a modest bid linked to a slight tweak in liquidity focus from the PBoC unwound. The light cheapening was aided by block sales in TY futures (-5K & -~3.8K).
• G20-related communique, including comments from Chinese President Xi & source reports pointing to continued differences re: the Russia-Ukraine war, albeit with a draft statement seemingly in the offing, failed to provide any meaningful impetus from the space.
• The same held true for softer than expected monthly economic activity data out of China.
• Finally, there were no headlines released surrounding the latest appearance from NY Fed President Williams, who moderated a panel at the Economic Club.
• PPI data, the Empire m’fing survey and Fedspeak from Cook, Barr & Harker will cross in NY hours on Tuesday.