Curve Flattens On Thursday

TYM3 deals at 116-02, +0-00+, in line with levels seen late in the NY session.

• Cash tsys finished 1-6bps richer across the major benchmarks, the curve bull flattened.
• Further concerns over regional banks saw tsys unwind brief pressure seen after spillover from Gilts after the BOE's 25bp rate hike. PacWest was pressured, falling 23%, after its deposits fell 9.5% last week. FDIC said larger lenders will face billions in extra fees to replenish the agency's insurance fund.
• Gains marginally extended after the latest round of US data. Initial Jobless Claims were higher than forecast, and PPI data was a touch softer than expected. However PPI ex Food and Energy did tick higher from its March print.
• The latest 30-Year Auction, which stopped through, added a brief layer of support. An above average bid/cover and strong indirect take up were observed.
• Minneapolis Fed President Kashkari said price pressure remains too elevated even as the Fed assesses the impact of banking strains on the US economy.
• Projected rate cuts for 2023 eased slightly and tsys pared gains into the close.
• There is a thin data calendar in Asia-Pac today. Further out we have UofMich Consumer Sentiment. Fedspeak from SF Fed President Daly will also cross.