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Marginally Richer In Asia, CPI In View

US TSYS

TYU3 deals at 113-20, +0-08+, with a 0-08+ range observed on volume of ~47k.

  • Cash tsys sit 1-3bps richer across the major benchmarks, the curve has bull steepened.
  • Tsys firmed to session highs on spillover from the PBOC cutting the 7-Day Repo Rate 10bps to 1.90%.
  • Gains were marginally pared as there was no follow through on the move higher and tsys dealt in narrow ranges for the remainder of the Asian session. Perhaps the proximity to today's CPI print limited activity.
  • FOMC dated OIS remain stable, ~6bps of hikes are priced in for Wednesday's meeting with a terminal rate of ~5.30% in July.
  • Today's docket is headlined by May CPI print, the MNI preview is here. We also have the latest 30-Year supply.

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