Marginally Richer In Asia

TYM3 deals at 110-19+, +0-03+, a touch off the top of the contained 0-05 range on volume of ~89k.

• Cash Tsys sit flat to 1bp richer across the major benchmarks, with some light bull flattening apparent.
• Modest pressure from February's Tokyo CPI data, the headline and core-core measures print a touch above expectations, saw Tsys weaken in early dealing.
• The pressure reversed as a bid in JGBs facilitated a recovery from early session lows.
• Tsys looked through the firmer than expected Caixin Services PMI print out of China, and the light richening held.
• Narrow ranges were observed for the remainder of the session with little follow through.
• Early in the Asian session Fed Gov Waller noted that a strong labour market could force the Fed to raise rates further than officials currently expect. Elsehwere, Minneapolis Fed President Kashkari ('23 voter) reiterated that inflation is very high, with demand exceeding supply.
• In Europe today Eurozone PPI data and ECB-speak from de Guindos headline. Further out the ISM Services survey provides the highlight ahead of the weekend.