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Light Twist Flattening Apparent in Early Trade

US TSYS

Cash Tsys are dealing 0.5bp cheaper to 1.5bp richer in early Asia trading. The belly is leading the bid, with some light twist flattening apparent, as the curve pivots around 3s. TYH3 deals at 113-28+, +0-02, just off the peak of the narrow 0-04 range seen this morning. With a light data calendar in Asia-Pac hours participants may be more willing than usual to remain sidelined ahead of the U.S. CPI release, which provides the final key input ahead of Wednesday's FOMC decision (see our full preview of the CPI release here).

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