Cheaper In Asia, 10 Year Yield Holds Above 4%

TYM3 deals at 110-25, -0-07, a touch off the base of its 0-11 range on elevated volume of ~150k.

• Cash Tsys sit 1-4bp richer across the major benchmarks, the curve has bear flattened. 10-Year Tsy yields have pushed and held above 4.00%.
• Tsys were marginally pressured in early dealing, cross market pressure from JGBs spilled over.
• The early cheapening extended through the session, there was no overt headline driver for the move. Asia-Pac participants seemingly focused on firmer than expected prices paid component in the latest ISM manufacturing survey as well as Wednesday's comments from Minneapolis Fed President Kashkari (’23 voter), as he noted that he has an open mind on a 25 or 50bp hike in March.
• Downside interest via TY and US options headlined on the flow side, although was light.
• In Europe today Eurozone CPI and unemployment headline, further out we have initial jobless claims. Fedspeak from Gov Waller will also cross.