Coiling, Light Twist Steepening Bias

Yields initially ticked higher through early London trade, with the light bid surrounding dovish (at least vs. market pricing/expectations) comments from BoJ Deputy Governor Uchida and softer-than-expected CPI data out of China fading. The space has since stabilised.

• Cash Tsy yields are left 1.5bp lower to 0.5bp higher, as the curve sees a light twist steepening.
• TYH4 shows -0-01+ at 111-04+, around the middle of a 0-07 range on light volume of ~165K.
• The initial post-10-Year auction bid has faded.
• FOMC-dated OIS shows ~4.5bp of cuts for the March FOMC and ~122bp of cuts through ‘24 on the whole, with those markers in familiar territory.
• Weekly jobless claims data headlines the NY data docket, while Richmond Fed President Barkin will cross the wires on a couple of occasions (after speaking in recent days) and 30-Year Tsy supply wraps up this week’s coupon auction schedule.