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Marginally Cheaper In Asia

US TSYS

TYU3 deals at 113-11+, -0-03, a 0-08 range has been observed on volume of ~80k.

  • Cash tsys sit 1-3bps cheaper across the major benchmarks, the curve has bear flattened.
  • Tsys cheapened in early dealing as local participants faded yesterday's richening perhaps using the opportunity to enter fresh shorts/close out long positions.
  • Pressure marginally extended as e-minis fell and the USD firmed. However there was little follow through on the move and tsys ticked away from session lows dealing in narrow ranges for the remainder of the session.
  • The space looked through the latest BOJ monetary policy decision, the bank held policy steady as expected.
  • The final print of Eurozone CPI provides the highlight in Europe today. Further out we have UofMich Consumer Sentiment, as well as Fedspeak from St Louis Fed President Bullard, Gov Waller and Richmond Fed President Barkin.

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