Curve Bear Flattens On Thursday

TYM3 deals at 114-24+, +0-01, in line with late NY levels.

• Cash tsys finished 5-12bps cheaper across the major benchmarks, the curve bear flattened.
• Tsys were pressured after the latest round of US data showed an uptick in inflation, as Core PCE was firmer than estimated, and slowing growth as Q1 GDP was below forecasts.
• Losses briefly extended as the latest 7 Year Supply tailed, despite an average bid/cover ratio and indirect take up.
• Firmer US Equities, which rose the most since 6 January after solid earnings from tech companies, also added a layer of pressure
• FOMC dated OIS price ~22bp hike for next week's meeting with a terminal rate of 5.1% in June. There are ~60bps of cuts priced in 2023.
• The latest BOJ monetary policy decision provides the highlight in Asia today. Further out we have a slew of US data including PCE Deflator, MNI Chicago PMI and UofMich Consumer Sentiment.