Marginally Cheaper In Asia, Regional Data Drives Contained Two-Way Flows

TYM3 deals at 111-14, -0-07, just below the middle of its 0-06 range on volume of ~99K.

• Cash Tsys sit ~1bp cheaper across the major benchmarks.
• In early dealing Asia-Pac participants faded the month end flow-induced rally seen late in the NY session, also seemingly looking through the weak Consumer Confidence and MNI Chicago PMI prints.
• A recovery from session lows was facilitated by a bid in ACGBs in lieu of softer than expected monthly inflation data out of Australia.
• Gains were capped, with light pressure then see, in the wake of firmer than expected Chinese PMI data.
• In Europe today regional German and then national CPI, as well as final European Manufacturing PMIs headline. Further out U.S. Construction Spending and the ISM Manufacturing Survey will cross. We will also hear from Minneapolis Fed President Kashkari.