Marginally Cheaper In Asia

TYU3 deals at 113-20+, -0-03, a 0-05 range has been observed on volume of ~63k.

• Cash tsys sit ~1bp cheaper across the major benchmarks.
• Tsys cheapened in early dealing as local participants faded Thursday's richening, perhaps using the opportunity to close out longs/enter fresh shorts.
• Little meaningful macro news flow crossed through the session, and tsys dealt in a narrow range. The proximity to Tuesday's CPI print and Wednesday's FOMC meeting may be keeping participants on the sidelines.
• FOMC dated OIS price ~7bps of hikes into the June meeting with a terminal rate of ~5.30% in July. There are ~25bps of cuts priced for 2023.
• There is a thin calendar on Friday, the Canadian Labour Force survey provides the highlight.