Marginally Cheaper Early On

Tsys have softened a touch in early Asia-Pac dealing, with the major cash benchmarks running 0.5-1.5bp cheaper across the curve, with 7s leading the weakness. TYU2 operates a shade below its late NY levels, within a 0-04+ range, last -0-0)+ at 119-12. Macro headline flow has been virtually non-existent thus far, with most of the regional focus falling on the impending RBNZ decision. A reminder that a 50bp rate hike is seen as a foregone conclusion at the end of today’s RBNZ meeting, so focus should quickly shift to the language deployed by the Bank, in addition to its updated OCR track projections.