Curve Bull Fattens, But Issuance & Block Flow Caps Gains In NY

TYH3 deals at 112-27, +0-06+, a touch below levels seen in late NY trading.

• Cash Tsys bull flattened on Tuesday, with the major benchmarks 5-13bp richer at the bell.
• Tsys rallied in yesterday's European session on spill over strength from Bunds in lieu of softer than expected German CPI data.
• Stronger than forecast construction spending data helped cap the space in NY hours. Elsewhere, swap flows surrounding $30bn in corporate bond issuance and a sizeable block sale in TY futures (-11,315) also added pressure.
• Cross asset flows supported Tsys, with U.S. equities offered as Apple and Tesla fell, stoking concerns about growth stocks and the broader U.S. economy. Meanwhile, the DXY was firmer against the defensive backdrop, up ~1.1%. WTI was down ~3.8% as mild winter temperatures in the U.S. and Europe weighed.
• In Asia-Pac today there is a thin docket, further out we have final services & composite PMI releases from Europe and the ISM m'fing survey in the U.S., although it will be the minutes from the Fed's December meeting that provide the highlight of the day.