Cheaper Overnight

Asia-Pac participants were seemingly comfortable when it came to selling into Wednesday’s European/NY richening. That leaves the major cash Tsy benchmarks 3.0-4.5bp cheaper on the day into London dealing, with the belly leading the way lower, while TYM2 is -0-09 at 119-07, 0-03 off session lows.

• It wasn’t all one-way trade, with a light early Asia bid developing on the back of an evacuation of the U.S. Capitol, which was later deemed to be a false alarm surrounding a plane and parachute jump at a nearby sporting event.
• Broader macro headline flow was light, with one of Russian President Putin’s staunchest allies pointing to the fall of the Ukrainian city of Mariupol at some point today.
• Overnight flow was dominated by and FV/UXY flattener block (-6,718/+2,734)
• Looking ahead, Thursday will see the latest Philly Fed business survey and weekly jobless claims data cross, with Fedspeak from Powell & 5-Year TIPS supply also due.