Marginally Cheaper In Asia, Powell Due Shortly

TYU3 deals at 113-03, -0-05, a 0-05+ range has been observed on volume of ~45k.

• Cash tsys sit 1-2bps cheaper across the major benchmarks the curve has bear flattened.
• Tsys were pressured in early dealing as Asia participants digested Fed Chair Powell's comments that consecutive rate hikes were not off the table and news that major US banks passed the Feds stress tests.
• Losses marginally extended after pressure from ACGB's spilled over in lieu of firmer than forecast Retail Sales in Australia.
• Ranges remained narrow with little follow through on moves for the remainder of the session.
• Fed Chair Powell takes part in a discussion at the Bank of Spain, which crosses shortly. Further out US GDP and Initial Jobless Claims are due. Fedspeak from Atlanta Fed President Bostic will also cross.