Lower In Asia Trade

Tsys have continued to move lower during Asia-Pac hours, with the region fading Wednesday’s rally, while there has been a lack of headline flow apparent. It looks like payside flow in swaps may be helping, with the major swap spreads running around 0.3-0.5bp wider at typing, after narrowing on Wednesday. TYM2 last deals -0-06+ at 122-30, just off the recently observed session low (with a modest blip lower observed at the time), operating within a 0-13 range thus far. Cash Tsys sit 2-5bp cheaper on the day, with the front end leading the way, allowing bear flattening to develop. The previously flagged block sale of FVM2 futures (-5,375) has headlined on the flow side.