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Cheapening Holds/Extends

US TSYS

Cash tsys sit 2-3bps cheaper across the major benchmarks.

  • The earlier flagged cheapening has held/extended, to recap there was no overt headline driver for the move. Asia-Pac participants focusing on firmer than expected prices paid component in the latest ISM manufacturing survey as well as Fedspeak from Minneapolis Fed President Kashkari (’23 voter) noting he has an open mind on a 25 or 50bp hike in March.
  • TYH3 deals at 110-24, -0-08, at fresh session lows.
  • Little in the way of meaningful macro news flow has crossed recently, meaning participants remain on headline watch.

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