Firmer On Weakness In Chinese Tech Stocks & Sharper Than Expect First Republic Deposit Flight

TYM3 re-tested its early Asia-Pac highs on a downtick in Chinese tech stocks, although failed to break that line. The contract is +0-10 into London hours, 0-01 off the peak of its 0-06 Asia-Pac range, on volume of ~68K. Monday’s break and close above 115-00 eases the bearish technical threat, with bulls now targeting the 14 Apr high (115-23).

• Cash Tsys are 0.5-2.5bp richer, with intermediates leading the bid.
• Weakness in Chinese tech stocks, centred on continued worry re: potential fresh U.S. steps against the Chinese chip space, along with some questions surrounding the longevity of the Chinese consumption boom, supported Tsys overnight.
• That came after support from First Republic’s earnings, published after hours on Monday, faded.
• Warnings from Russia re: the potential for direct conflict with the U.S. also generated some alarm.
• The most notable rounds of flow came via pockets of TY & FFK3 screen buying during the early rounds of Asia-Pac trade.
• ECB & BoE speak will come under the microscope during the London morning. Further out, NY hours will see the release of new home sales data, a couple of the major home price metrics, consumer confidence. services activity indicators from the Philly & Dallas Feds and the Richmond Fed m’fing index. We will also get 2-Year Tsy supply.