Light Demand Seen In Asia

Cash Tsys saw some light bull flattening overnight, with yields running unchanged to 1.2bp richer at typing. Some pointed to cross market demand for the space as Aussie bonds weakened. T-Notes held a tight 0-03 range, last -0-00+ at 139-14.

• To recap Thursday's session: Support for Gilts on the back of the latest BoE monetary policy decision added to the buying interest in Asia-Pac hours, biasing Treasuries higher ahead of Thursday's NY session. A slower than expected reduction in weekly initial jobless claims was also in the mix in early NY trade. Still, the space pulled back from richest levels, with continued talk surrounding the lack of WAM extension in the Fed's Tsy purchases evident, allowing T-Notes to move towards worst levels of the day in late NY dealing. The pullback came even as equities traded on the backfoot, still, the curve bull flattened on the day. The latest round of 10-Year TIPS supply was easily digested.
• Focus on Friday moves to flash UoM sentiment data and addresses from Fed's Bostic, Bullard & Kashkari.