Firmer In Asia

Weakness for some of the major regional Asia-Pac tech equity indices (which later moderated) coupled with spill over from a bid in the ACGB space allowed Tsys to richen a touch overnight, leaving TYU2 +0-05 at 116-31, 0-02 off the peak of the 0-11 range, on sub-par volume of ~70K. Meanwhile, cash Tsys run 1.5-3.0bp richer across the curve.

• There wasn’t much in the way of meaningful headline flow to digest.
• Market flow was headlined by what seemed to be a block buy of the TYU2 116/114 put spread, hedged with a block buy of the TYU2 119.50 calls (+5K vs. +2K).
• Looking ahead, Tuesday’s NY session will bring the release of trade balance data, various house price metrics, the consumer confidence reading and Richmond Fed m’fing index. We will also get 7-Year Tsy supply (hot on the tail of Monday’s particularly week 5-Year auction) and Fedspeak from San Francisco Fed President Daly (’24 voter).