Curve Bull Steepens On JOLTS, Regional Banking Concerns

TYM3 deals at 115-20+, +0-02+, in line with levels seen late in the NY session. A reminder that cash tsys are closed in Asia today due to the observance of a national holiday in Japan.

• Cash tsys finished 9-18bps richer across the major benchmarks, the curve bull steepened.
• Tsys firmed as JOLTs Job Openings data showed further labour market moderation as job openings fell to their lowest level since Apr 2021.
• Further concerns over the US banking sector resurfaced with PacWest and Western Alliance leading a sell of in regional bank stocks, KBW Bank Index was down ~5.5%.
• A 5.3% fall in WTI also added a layer of support.
• FOMC dated OIS price a ~22bp hike for today's meeting with a terminal rate of 5.05%. There are ~70bps of cuts in 2023.
• Q1 Employment data from New Zealand headlines in Asia-Pac. Further out the latest FOMC rate decision and Fed Chair Powells press conference provides today's highlight, the MNI preview is here. A slew of US data including ADP Employment, Services PMI and ISM Services.