Futures Cheapen Marginally In Asia With Cash Closed

TYU2 deals around the midpoint of its 0-10+ Asia-Pac range, last -0-02 at 119-22 on below par volume of ~35K. Note that activity in the Tsy space has been limited by the closure of the cash Tsy markets owing to the observance of a Japanese national holiday. Cash markets will open at 07:00 London time.

• Most of the Asia-Pac session provided little to really counter the cheapening impulse that was observed in the second half of Wednesday’s NY session, after the bulk of the CPI-related gains reversed (the curve twist steepened on Wednesday come the close of play) on hawkish Fedspeak from ’22 non-voters Kashkari & Evans and the latest article from WSJ Fed whisperer Timiraos ( https://www.wsj.com/articles/fed-likely-to-want-further-evidence-of-inflation-slowdown-11660153057?mod=Searchresults_pos1&page=1 ).
• E-minis traded through their respective Wednesday highs after the NASDAQ 100 closed in technical bull market territory, with the 3 major contracts off best levels of the session but last printing ~0.3% above their respective settlement levels.
• Futures found a bit of a base in Asia dealing, then received the most marginal of boosts as an FT interview with San Francisco Fed President Daly (’24 voter) reiterated her baseline view surrounding the likelihood of the need for a 50bp hike come the end of the September FOMC meeting.
• The space looked through the latest round of localized COVID restrictions in China.
• Looking ahead, PPI and weekly jobless claims data, 30-Year Tsy supply and another address from Daly headline on Thursday.