Marginally Firmer In Asia

TYM3 deals at 115-01+, +0-04, a touch off the top of the observed 0-06 range on volume of ~62k

• Cash tsys sit 1-2bps richer across the major benchmarks, some light bull steepening is apparent.
• Tsys firmed after Asia participants digested this morning's Fedspeak, Goolsbee and Bostic think that the Fed should pause at its June 14 meeting to allow time to assess the impact of previous tightening but also the effect of higher banking funding costs on the economy.
• Spillover from a rally in JGBs, after a strong 20 Year auction, added a layer of support.
• Tsys held marginally richer for the remainder of the session with little follow through on moves dealing in narrow ranges.
• President Biden has cut short his scheduled trip to Asia this week as discussions over the US debt ceiling remain ongoing. Biden noted that the latest round of talk was productive.
• In Europe today we have the final print of Eurozone CPI, further out US Housing Starts crosses. We also have the latest 20-Year supply.