Cheaper In Asia

TYH3 deals at 111-25, -0-07, a touch off the top of its 0-04+ range on volume of ~63K.

• Cash Tsys sit 2-4bps cheaper across the major benchmarks.
• Tsy yields firmed after the long weekend in early trade, catching up the moves seen in futures yesterday with recent hawkish repricing of the Feds tightening cycle still in focus.
• Losses extended as pressure in Antipodean rates spilled over. The weakness was fueled by NZ Treasury comments on RBNZ policy and RBA's Feb minutes showing that a pause in policy was not discussed.
• Weakness in the Hang Seng provided some marginal support, as did a bounce in ACGBs.
• Block sellers in FV futures (-3.5K & -1.9K) headlined flow wise, while selling in the FV & TY rolls kept broader volume ticking over.
• In Europe today flash PMI data cross, further out flash US PMIs, Philadelphia Fed Non-Manf Activity and existing home sales data is on the wires. We also have the latest round of 2-Year Tsy supply.