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Cheaper In Asia

US TSYS

TYU3 deals at 111-06+, -0-04+, a touch off the base of the 0-10 range on volume of ~78k.

  • Cash tsys sit 2-3bps cheaper across the major benchmarks, the belly is marginally leading the cheaps.
  • Tsys were pressured in early dealing as spillover from JGBs weighed, losses were briefly pared after an unscheduled bond buy from the BOJ.
  • Through the session tsys continued to tick lower however ranges were narrow as follow through remained limited.
  • On Sunday Federal Reserve Bank of Minneapolis President Kashkari said the base case for the US was a slowing economy but avoidance of a recession.
  • Eurozone CPI headlines in the European session today, further out we have Dallas Fed Mfg Activity and MNI Chicago PMI. Fedspeak from Chicago Fed President Goolsbee is also due.

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