Cheaper In Asia, Credit Suisse Takes Action to Strengthen Liquidity

TYM3 deals at 115-02+, -0-01+, with a 0-24+ range observed thus far on volume of ~233k.

• Cash tsys sit 2-7bps cheaper across the major benchmarks. The curve has bear flattened.
• In early dealing a bid in Antipodean FI spilled over, in lieu of weaker than expected NZ GDP and a repricing of RBA cash rate expectations, and tsys richened in early dealing.
• Pressure as Credit Suisse reported, link here, they are taking action to strengthen liquidity saw tsys extend losses. The bank are to borrow CHF50bn from the Swiss National Bank, as well as buying back debt securities of up to CHF3bn.
• Tsys held cheaper through the Asian afternoon.
• Flow wise a block seller in TU (2k lots) was the highlight.
• Fed dated OIS pricing for March and May meetings have ticked higher in Asia, with ~30bps of hikes before a terminal rate of ~4.9% is reached. There are ~100bps of cuts priced in for 2023.
• In Europe today the ECB's monetary policy decision headlines. We also have jobless claims, Housing Starts and Philadelphia Fed Manufacturing Index.