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Light Richening In Asia

US TSYS

Tsys have experienced some marginal richening in Asia dealing, with regional participants willing to buy Tuesday’s dip. Outright yield levels, questions re: the potential for further short-term hawkish Fed re-pricing, downside misses in the latest round of Chinese inflation data and questions in the West re: the apparent de-escalation in the Russia-Ukraine standoff (punctuated by U.S. President Biden’s continued alert re: the potential for a Russian invasion of Ukraine) are likely fostering the bid. Cash Tsys run 1.5-3.0bp richer across the curve, with the front end leading, facilitating some bull steepening. TYH2 prints at fresh session highs, +0-05 at 125-28+.

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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