Cross-Market Moves At The Fore, A Touch Richer Into London Trade

TYH3 heads into London trade 0-01 shy of the peak of its 0-07+ Asia-Pac range, dealing +0-03+ at 114-23, running on about average volume of ~89K. Cash Tsys are flat to 1bp richer, with the intermediate zone leading the modest richening.

• Cross-market gyrations seemed to aid the ultimate direction of travel in Asia, with oil more than reversing its early gains (after an early bid was seen on a seeming ratcheting up of Israeli-Iranian tensions, as Israel seemed to be the most likely perpetrator of drone strikes on Iranian facilities), a bid in JGBs and weakness in Hong Kong equities observed.
• Elsewhere, weekend news flow saw U.S. Tsy Sec. Yellen continue to highlight her worry re: fiscal matters and the threat of default, while WSJ Fed watcher Timiraos flagged a debate within the central bank re: whether wages or low unemployment will drive inflation.
• The Dallas Fed m’fing activity release headlines the domestic docket on Monday. Further out, a slew of global central bank decisions, headlined by the FOMC, present the major risk events this week, while the ISM surveys, NFPs, quarterly refunding announcement and ECI data will also filter out during the coming the days.