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Cheapening Holding

US TSYS

We believe that cross-market impact from the Antipodean rates markets has been felt, with both ACGBs and NZGBs cheaper in lieu of domestic factors, while some Asia-Pac willingness to fade the richening during Fed Chair Powell's press conference was apparent early on. Cash Tsys sit 1.0-3.5bp cheaper across the major benchmarks as the curve bear flattens. TYH3 deals at 114-23, 0-03+ off the base of its 0-11 range after ticking away from session lows. Little macro news flow in recent dealing leaves participants on headline watch as we enter the latter half of the Asian session.

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