Consolidate, Curve Flatter On Tuesday

TYM3 deals at 114-14, -0-01+, in line with late NY levels.

• Cash tsys finished flat to 2bps richer across the major benchmarks, the curve flattened on Tuesday.
• Fedspeak from St Louis Fed President Bullard weighed on tsys, he reiterated previous comments seen in previous communique that he favours getting rates into a 5.5%-5.75% range. He also said the Fed should avoid extensive forward guidance at the next FOMC meeting.
• Risk off flows as US equities were pressured in early trade saw tsys marginally extend gains. Gains were pared as US Equities firmed to finish unchanged from session lows and weakness in EGBs spilled over into the wider space.
• FOMC dated OIS price a ~22bp hike into the May meeting, the terminal rate is now seen at 5.10 in June. There are ~60bps of cuts priced for 2023.
• There is a thin docket in Asia-Pac today. Further out we have the final print of Eurozone CPI and the Fed releases the Beige Book. The latest 20 Year supply is also due.