Marginally Richer In Asia, Fed In View

TYM3 deals at 114-09, +0-05, with a 0-08 range observed today on volume of ~91k.

• Cash tsys sit 1-4bps richer across the major benchmarks, the curve has steepened
• In early dealing, Asia-Pac participants faded yesterday's cheapening, perhaps using the opportunity to square short positions ahead of today's FOMC rate decision.
• The bid marginally extended on reports that US bank First Republic may need government support to encourage buyers for the troubled bank.
• Further support was seen as USD/JPY was offered after testing resistance level at ¥132.65, the high from 20 March, which spilled over into mild USD weakness. However there was little follow through in the move and tsys ticked away from session highs.
• FOMC dated OIS currently price a 20bps hike for today's meeting, with a terminal rate of ~4.95% seen in May. There are ~65bps of cuts priced for 2023.
• In Europe today UK CPI and ECB speak from Lagarde headlines. However the Fed rate decision and Powells post meeting press conference are today's highlights; our preview is here.