Firmer And Flatter To Start, Raft Of Fedspeak Eyed

Weakness in Chinese house prices and Asia-Pac equity indices provided a bid for Tsys in Asia hours, as the spaced moved further away from Wednesday’s cheaps. Still, the Tsys operate shy of best levels seen over the last couple of sessions.

• Yields are 3-4bp lower across the curve, with a light flattening bias observed.
• TYZ3 is +0-07 at 108-14, 0-03 shy of the peak of its early 0-10 range. Initial resistance comes in at 108-30+/31 the November 15/14 highs, while initial support is seen at 107-00, the Nov 13 low.
• Weekly jobless claims data and regional Fed economic activity indices provide the economic data highlights in NY hours.
• Elsewhere, participants will scour the deluge of Fedspeak that is set to cross for any post-CPI changes in tone.
• For reference, FOMC-dated OIS prices ~18bp of cuts through May ‘24, and more than fully discounts the first 25bp cut through the end of the June ’24 FOMC.