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Early Move Fades, Marginally Richer As Risk Assets Firm

US TSYS

TYH3 deals at 113-02+, +0-14, jut off the top of its 0-08+ range, on volume of ~75K.

  • Cash Tsys are marginally richer in today's Asia-Pac session, running 1-2bp firmer across the major benchmarks, with the 3- to 20-Year zone leading the strength.
  • Tsys initially traded cheaper as local participants faded Tuesday's richening in early Asia-Pac dealing.
  • A rally in the Hang Seng, aided by hopes of Chinese policy maker support for the economy, saw some demand for risk assets and promoted weakness for the USD, helping support the Tsy space, with TYH3 eying a test of Tuesday’s highs as a result.
  • A block buyer of TUH3 headlined on the flow side (+3K), with some desks reporting light Tsy selling/swap payside interest around best levels, although those flows were limited.
  • In Europe today we have final services & composite PMI releases. Further out we have JOLTS Job Openings and the ISM m'fing survey, although it will be the minutes from the Fed's December meeting that provide the highlight of the day.

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