Curve Twist Steepens In Asia

TYM3 deals at 110-25+, -0-04, at the base of its 0-06 range on volume of ~65K.

• Cash Tsys sit 1bp richer to 1bp cheaper across the major benchmarks, the curve has twist steepened
• In early trade Asia-Pac participants faded the 10-Year Auction driven weakness seen late yesterday, perhaps using the opportunity to exit short positions, with one eye on Fed Chair Powell's choice of phrases on Wednesday ("data-dependent" and "not on a pre-set path") after Tuesday's hawkish warnings.
• Tsys ticked away from early best levels through the session as there was little follow through on the initial move higher.
• A TU block sale (-3.8K) headlined on the flow side.
• Northwestern University Professor Janice Eberly is the reported frontrunner in the White House search for a successor to Lael Brainard as vice chair of the Federal Reserve (Seen as the more dovish of two ofthe likely candidates touted for the role)..
• The space looked through weaker-than-forecast PPI and CPI from China.
• There is a thin data calendar in Europe today. Further out we have Challenger Job Cuts and Initial Jobless Claims, elsewhere, comments from Fed VC Barr will cross. We also have the latest 30-Year Tsy Supply.