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Cheaper In Asia As Thursday's Forces Spill Over


TYH3 deals at 111-17+, -0-11, a touch off the base of its 0-08 range on volume of 128K.

  • Cash Tsys sit ~2-3bps richer across the major benchmarks.
  • Tsys were cheaper in early Asian dealing as local participants yesterday’s stronger than expected PPI data and Fedspeak.
  • Sell side calls from Goldman Sachs and Bank of America, with both now looking for a terminal Fed Funds target range of 5.25-5.50%, also weighed on the space.
  • The weakness extended a touch with 5-10 year zone printing fresh year to date peaks in yield terms.
  • Highlight flow-wise was TY block sellers (-3K & -2.25K) with a TU block seller also noted (-1.6K).
  • The USD erased its 2023 losses, aided by the move in Tsy yields, BBDXY is ~0.4% firmer.
  • In Europe today we have PPI from Germany and French CPI. Further out US terms of trade and Fedspeak from Richmond Fed President Barkin and Fed Gov Bowman will cross.

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