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Curve Flattens In Asia

US TSYS

TYM3 deals at 115-22+, -0-03, with a 0-05+ range observed on volume of ~90k.

  • Cash tsys sit 2bps cheaper to 1bp richer across the major benchmarks. The curve has twist flattened pivoting on 20s.
  • Firmer US Equity Futures which was linked to strong earnings from Alphabet & Microsoft, as well as encouraging deposit stabilisation at PacWest saw tsys cheapen in early dealing.
  • Softer than expected CPI data from Australian facilitated a recovery off session lows in tsys.
  • Narrow ranges with little follow through on moves were observed for the remainder of the session.
  • On the flow side two block trades of 2.5k lots of FVM3 111.00 calls headlined.
  • In Europe today Riksbank’s Monetary Policy Decision headlines. Further out we have Durable Goods Orders and the latest 5 Year Supply.

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