Coiling In Asia

An early, modest Asia-Pac bid in U.S. Tsys has faded from extremes. The light bid was linked to soft guidance from U.S. retail giant Walmart, which spurred after-hours pressure for the retail sector, resulting in a small downtick for e-minis (-0.3% last). Equities have since found a bit of a base as continued focus on support for the Chinese property space provided a helping hand for broader risk appetite.

• Still, the combination of the proximity to Wednesday’s FOMC and lack of meaningful macro headlines made for generally limited Asia-Pac dealing. TYU2 deals in the middle of a 0-07 range, +0-06 at 119-27, on sub-standard volume of 43K. Meanwhile, cash Tsys run 0.5bp cheaper to 1.0bp richer, twist flattening, with a pivot around 3s.
• A 2K block sale of FVU2 113.00 calls headlined on the flow side overnight.
• Tuesday’s NY calendar includes various house price metrics, the Richmond Fed m’fing index print, Conference Board consumer confidence and 5-Year Tsy supply.