Marginally Cheaper In Asia

TYU3 deals at 113-26, -0-02+, a touch off the base of the 0-06 range on volume of ~52k.

• Cash tsys sit 1-3bps cheaper across the major benchmarks, the curve has bear flattened.
• Spillover pressure from ACGBs as the RBA lifted the cash rate 25bps to 4.15%, the market had been split between a hold at 3.85% or a 25bp hike, saw tsys marginally extend losses.
• Earlier in the session, tsys had ticked lower as better risk sentiment as Hong Kong equities advanced on speculation regarding fresh stimulus measures and the USD was marginally pressured.
• FOMC dated OIS price ~7bps hike into next week's meeting, the terminal rate is seen at ~5.3% in June. There are ~30bps of cuts priced for 2023.
• There is a thin data calendar in Europe today, further out Fedspeak from Cleveland Fed President Mester will cross.