Looks like Tsys driving the broader bond....>

US TSYS: Looks like Tsys driving the broader bond space in early Asia-Pacific

trade as regional players seem happy to sell the short-end of the U.S. curve

after the cash Tsy re-open on the back the less dovish comments from Bullard in

U.S. hours. Chair Powell also warned against an overreaction. This has wound

back market pricing of a 50bp cut in July. Fed Fund futures are still fully

pricing at least 25bp worth of easing from the Fed next month, although now

price a 25% chance of a 50bp cut (back from ~45% at the Asia/Europe crossover on

Tuesday), per CME Fedwatch. Interpolated OIS/Fed Funds currently price a ~30%

chance of a 50bp cut, per BBBG WIRP.

- Modest bear flattening apparent thus far.

- T-Notes last -04+ at 127-31+, with 10-Year cash Tsy yields at 2.004%.