Little Changed In Asia

Cash Tsys run little changed to 1bp richer into London dealing, with marginal flattening of the curve observed. TYZ2 operated within a 0-07 range during Asia hours, last dealing in the middle of that tight band, +0-02 at 112-19, on ~79K lots.

• An early Asia uptick in Tsys was facilitated by a couple of block buys in TY futures (+3.0K & +2.5K), with a weaker dollar alongside a move higher in e-minis seen at the same time.
• We then moved back from best levels of the day in Tsys.
• Outside of the previously outlined block buying in TY futures, we saw some mixed block flow in that contract (-1.6K & +1.6K), while downside expressions in FVZ2 via 107.25 puts (2x +1,875) were also executed via blocks.
• Asia headline flow was light at best, with nothing in the way of notable movement stemming from the latest North Korean missile test.
• The mix of a Chinese hioliday, lack of meaningful headline flow and proximity to Friday’s NFP release left most on the sidelines.
• Looking ahead, weekly jobless claims data, the latest challenger job cuts reading and a deluge of Fedspeak (headlined by Governors Waller & Cook) provide the highlights of Thursday’s NY docket.