Curve Steepens In Asia

TYM3 deals at 115-15+, +0-12+, with a 0-11 range observed on volume of ~110k.

• Cash tsys sit 6bps cheaper to 2bps richer across the major benchmarks. The curve has twist steepened pivoting on 10s.
• Local participants faded the move seen in the aftermath of the Fed rate decision, perhaps using the opportunity to close out long positions.
• A bid in e-minis and pressure on the USD saw tsys recover off session lows.
• A moderate extension of the bid was seen as the USD saw continued pressure, Asia-Pac participants looked to the dovish elements of Wednesday’s post-FOMC statement and Chair Powell’s communique. TU futures breached yesterday's post-FOMC high.
• Fed dated OIS now prince 10bp hike at the May FOMC meeting, with a terminal rate of ~4.9%. There are ~80bps of cuts priced for 2023.
• In Europe today we have SNB, Norges Bank and BOE rate decisions. Further out New Home Sales, Initial Jobless Claims and Fedspeak from St Louis Fed President Bullard will also cross.