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Little Changed, Narrow Range, Awaits BoE Decision & Chair Powell 2.0

US TSYS

TYU3 is currently trading at 113-08+, -1+ versus NY closing levels, after trading in a narrow range in Asia-Pac trade.

  • Cash US tsys are little changed across major benchmarks.
  • With the Asian calendar light, local participants are likely on headlines watch ahead of the BoE policy decision and Fed Chair Powell’s reappearance at Senate Banking Committee later today.
  • According to Bloomberg Economics, A string of hotter-than-expected pay and inflation data has raised the chances that the BoE delivers a 50bp hike at its June meeting. The baseline view is that the central bank will err on the side of gradualism, given the ground covered to date, and opt for a smaller move with a hawkish message in the minutes of the meeting. (See link)

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