Consolidation In Asia

Cash Tsys sit unchanged to a touch firmer as we move into European hours, with the curve seeing some light bull flattening (30s print ~2.5bp richer on the day). There has been very little of note on the headline front in Asia, outside of a softer than expected Chinese Caixin m'fing PMI print and some production issues for the J&J COVID vaccine at one plant, although the company has noted that it doesn't expect any interruptions to its delivery schedule. T-Notes in a narrow 0-05 range, last +0-03+ at 132-01+.

• As a reminder, the space was subjected to some end of month/quarter chop towards the end of Wednesday's NY trade, with a fresh COVID lockdown in France providing some support during that timeframe, alongside a couple of WNM1 block buys (5.5K lifted over the 2 blocks). T-Notes held to the confines of Tuesday's range and softened back towards lows into the close. 7s provided the weak point on the curve, cheapening by ~5bp on the day, as yields ticked higher across the board. Elsewhere, the first part of U.S. President Biden's infrastructure plan provided nothing in the way of notable surprises given the leaks ahead of his address, while the monthly ADP employment print didn't quite meet median expectations, but still topped +500K.
• The ISM m'fing survey headlines the local economic docket on Thursday, with challenger job cuts and the weekly jobless claims data also due.