Marginally Cheaper

Cash Tsys run little changed to 1bp cheaper across the curve shortly after the re-open as Asia-Pac participants react to Monday’s cheapening in core global FI markets.

• TYZ2 has had a look below Monday’s low but has failed to make a meaningful break below thus far, last dealing -0-01 at 109-19+, operating in a narrow 0-03+ range. Note that initial support for that contract comes in at Friday’s low (109-10+).
• We haven’t seen much in the way of meaningful macro headline flow, with Richmond Fed President Barkin pointing to the need for time for inflation to let up, despite the central bank’s aggressive rate hikes. Still, Barkin noted some early, promising signs re: the fight against inflation.
• Participants will once again watch Chinese markets and the rumour mill surrounding China’s ZCS closely during the remainder of Tuesday’s Asia-Pac session.