Fading

Asia-Pac participants seem willing to fade the rally witnessed in European & NY hours for a second consecutive day, leaving TYM2 -0-10+ at 128-13 at typing 0-01+ off the base of the early 0-06+ range, with the contract nudging further away from Tuesday’s high in the process. Cash Tsys run 1.5-3.0bp cheaper on the day, as the wings of the curve lead the way lower. There hasn’t been much in the way of meaningful macro headline flow observed during early Asia-Pac hours, with continued action against Russia, from both sovereign and corporates entities, apparent.

• Note that WTI futures showed as high as $107.55 in early dealing, representing a fresh cycle high, but have eased back below $106.
• A reminder that President Biden will give his State of the Union address at 21:00 Eastern (02:00 London), but the usual drip feed of content evident over the last few days has already revealed that Biden will criticise Russia. Meanwhile, the economic focus will seemingly fall on promoting U.S. manufacturing, in a bid to limit the impact of global inflationary impulses.