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Marginally Cheaper In Asia

US TSYS

TYH3 deals at 114-20+, -0-07, just off the base of its 0-08+ range on volume of ~70k.

  • Cash tsys sit 1-3 bps cheaper across the major benchmarks.
  • After a muted start, spillover pressure from JGBs, post Tokyo CPI release, weighed on tsys at the margins resulting in mild cheapening.
  • The move marginally extended as Japan and Netherlands agreed to join US curbs on Chinese Chips. There was a bid in the greenback, however with liquidity impaired due to the Chinese holidays there was little follow through in Tsys.
  • There is a thin docket in Europe today. Further out we have a slew of US data including personal income/spending, PCE Deflator, U of Mich Consumer Sentiment and Pending Home Sales.

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