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Marginally Firmer In Asia

US TSYS

TYM3 deals at 113-22+, +0-03, a touch off the top of the 0-06+ range on volume ~90k.

  • Cash tsys sit 1-2bps richer across the major benchmarks, light bull steepening is apparent.
  • Tsys marginally firmed on spillover from the bid in NZGBs in lieu of the RBNZ signalling that the current level of rates will be the peak after hiking the OCR 25bps to 5.50%.
  • For the remainder of the Asian session tsys held richer, dealing in narrow ranges with little follow through on moves.
  • FOMC dated OIS priced a terminal rate of ~5.20% in July with ~50bps of cuts in 2023.
  • In Europe today UK PPI and CPI prints headline. Further out we have the minutes from the May FOMC meeting. Fedspeak from Gov Waller will cross. We also have the latest 5-Year supply.

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