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Light Richening Holds, CPI In Focus

US TSYS

TYH3 deals at 113-29, +0-02+, just shy of the top of its 0-06 Asia-Pac range on light volume of ~51K.

  • Cash Tsys are running 0.5-1.5bp richer across the major benchmarks with the short end of the curve leading the bid, resulting in some very light bull steepening.
  • With little in the way of headline drivers, mild USD weakness points to cross-asset derived flows as a driver of the light richening.
  • U.S. CPI release today which provides the final key input ahead of Wednesday's FOMC decision (see our full preview of the CPI release here). The proximity to that data release limited activity in Asia, with Chinese & HK COVID-related headline flow failing to entice traders into a more active posture.
  • Elsewhere, on the supply front, we will see the latest 30-Year Tsy auction.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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