Curve Marginally Flatter In Asia

TYM3 deals at 113-15, unchanged from Monday's settlement level, a 0-04 range has been observed on volume of ~97k.

• Cash tsys sit 1bp cheaper to 1 bp richer across the major benchmarks, the curve has twist flattened pivoting on 10s.
• Tsys firmed as reports surfaced of President Biden and House Leader McCarthy's talks on the US debt ceiling. Despite ending with no deal the talks were described as "optimistic" and will continue.
• There was little follow through on the early move and tsys pared gains to deal in a narrow range for the remainder of the session.
• FOMC dated OIS price a terminal rate of ~5.20% in July with ~50bps of cuts scheduled for 2023.
• In Europe today we have flash Eurozone, German and French PMIs. Further out we have a slew of US data including Philadelphia Fed Non-Mfg Activity, New Home Sales and flash Services & Mfg PMIs. Fedspeak from Dallas Fed President Logan will cross. We also have the latest 2-Year supply.