Futures Firmer, Cash Closed Until London

TYM3 deals at 115-13, +0-10, marginally off the top of the 0-19 range on volume of 70k.

• Cash tsys remain closed due to the observance of a national holiday in Japan and will re-open in the London session.
• TYM3 see-sawed in early dealing, there was no obvious headline driver, however there was some possible pre-Fed position squaring in early flows.
• Futures were briefly pressured as reports crossed of the US studying ways to guarantee all bank deposits, link here. The move in tsys was limited, with TYM3 not challenging daily lows, as the move to guarantee deposits is not seen as not yet necessary.
• A rally in ACGBs, post the minutes of the March RBA policy, provided support to the wider FI space.
• A fresh bid saw tsys marginally extend highs, again there was no obvious headline driver. Regional and US Equities paring gains may have added a level of support.
• In Europe today the German ZEW Survey is the highlight. Further out Canadian CPI, Philadelphia Fed Non-Manufacturing Index and Existing Home Sales headline the docket. We also have the latest 20-Year Supply.