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Curve Marginally Flatter In Asia

US TSYS

TYU3 deals at 111-15, +0-02, a 0-07 range has been observed on volume of ~71k.

  • Cash tsys sit flat to 2bps richer across the major benchmarks, the curve has bull flattened.
  • Tsys were firmer in early dealing as local participants digested yesterday's dovish Fedspeak by Philadelphia Fed President Harker as well as a strong 3 Year auction. Gains marginally extended alongside a recovery off early session lows in e-minis.
  • The move higher didn't follow through and tsys ticked away from early session highs, a firmer than forecast Chinese CPI print weighed at the margins.
  • Tsys observed narrow ranges for the remainder of the session.
  • There is a thin data calendar in Europe today, further out the docket is thin with just MBA Mortgage Applications due. We also have the latest 10-Year supply.

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