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Holding Cheaper

US TSYS

Cash Tsys sit 2-5bps cheaper across the major benchmarks with the curve bear flattening, as the early cheapening holds through the Asian session. TYH3 deals at 114-08, -0-05+, as it ticks away from the base of its 0-08+ range.

  • Japan's Deputy Chief Cabinet Secretary Isozaki recently noted there was no truth to the previously highlighted Nikkei report re: the next BoJ Governor. Finance Minister Suzuki earlier said he hasn’t heard such discussions, although he conceded that he is “out of the loop” on the matter. Isozaki's comments resulted in some light screen selling of TY, although the fresh momentum didn't stick.
  • Participants will have an eye on any reaction in JGBs when dealing resumes after the Tokyo lunch break.

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