Curve Marginally Flatter In Asia

TYZ3 deals at 107-07+, +0-12, a 0-09 range has been observed on volume of ~166k.

• Cash tsys sit 1bp cheaper to 3bps richer across the major benchmarks, the curve has twist flattened pivoting on 5s.
• Tsys extended their post-FOMC bid in early Asian dealing as local participants digested the FOMC rate hold and Chairman Powell's remarks, this was seen alongside pressure on the USD and a bid in US Equity futures.
• The short end was pressured through the session erasing early gains, perhaps the rise in Oil prices weighed. WTI was up ~1%.
• FOMC dated OIS now price a terminal rate of 5.40% in January with ~70bps of cuts by September 2024.
• The latest monetary policy decision from the Bank of England headlines in Europe, further out we have US factory orders, initial jobless claims and productivity.