Early Richening Holds In Asia

TYM3 deals at 115-27, +0-01+, with a narrow 0-04+ range observed on volume of ~49k.

• Cash tsys sit ~3bps richer across the major benchmarks.
• Asia-Pac participants faded Friday's post-NFP cheapening, perhaps focusing on the lower than expected average hourly earnings.
• The latest Sino-Taiwan tensions, as China simulated precision strikes on Taiwan during military drills over the weekend, also added a layer of support.
• The early richening held for the remainder of the session as tsys traded in narrow ranges with little follow through on moves.
• Fed dated OIS price ~18bp hike into the May meeting with the terminal rate at 5%. There are now ~70bps of cuts in 2023.
• There is a thin data calendar in Europe today, further out US Wholesale Inventories and Fedspeak from NY Fed President Williams provide the highlight on Monday.