Holding Firmer

Early Asia-Pac dealing saw Tsy market participants seemingly continue to focus on the lack of firm pushback to the dovish market reaction to last week’s FOMC in Fed Chair Powell’s Tuesday address, with the late NY corporate and Tsy supply-induced cheapening aiding entry. Tsys have edged away from firmest levels in recent trade, with TYH3 last +0-05+ at 113-13, 0-02 off the peak of its 0-07+ range, while cash Tsys sit 1.5-3.0bp richer, with a light steepening move observed. The previously flagged block buy in TY futures (+1.5K) has provided the most notable flow. Macro headlines have been on the light side, with participants starting to digest the excerpts from U.S. President Biden’s State of the Union address.