Marginally Firmer In Asia

Tsys have nudged higher during Asia-Pac dealing, unwinding a little of Monday’s cheapening in the process. Note that the richening isn’t sizable, with a downtick in Chinese equities (which struggled alongside a move higher in the latest Chinese daily COVID case figures) and some spill over from Monday’s move away from NY session cheaps (which came alongside reports that tech giant Apple plans to trim spending and headcount growth in some areas during ’23) supporting the space during Asia-Pac hours.

• That leaves the major cash Tsy benchmarks running 1.5-2.5bp richer across the curve, with very modest bull steepening in play. Meanwhile, TYU2 deals -0-03 at 118-12, 0-00+ off the peak of its 0-06+ session range, on very limited volume of ~40K.
• Geopolitical-tied headlines e.g. FT sources suggesting that U.S. House Speaker Pelosi is getting ready to visit Taiwan in the coming weeks, had nothing in the way of tangible impact on Tsys during overnight dealing, with the space also looking through a downtick in ACGBs.
• Looking ahead, housing starts and building permits data headline the NY docket on Tuesday.