Moderately Pressured On Wednesday

TYM3 deals at 115-14, -0-03+, in line with late NY levels.

• Cash tsys finished 4-6bps cheaper across the major benchmarks on Wednesday.
• Tsys firmed off session lows after reports surfaced that First Republic could face potential curbs on Fed borrowings as FDIC weighed the prospect of downgrading the bank.
• Early on Thursday House Republicans passed legislation on Wednesday that would raise the US Debt Ceiling by $1.5tn in exchange for steep spending cuts. The Senate is expected to vote against the bill.
• The recovery was aided by the latest 5 Year supply, the auction stopped through, an above average bid/cover ratio and indirect take up were observed.
• Earlier in the session tsys were pressured as the USD firmed off session lows and e-minis also rose as PacWest had a significant number of new business accounts as its benefited from the collapse of SVB.
• Pre-auction hedging ahead of the 5 Year supply also weighed.
• There is a thin data calendar in Asia-Pac today. Further out we have Initial Jobless Claims and Advance read of US GDP. We also have the latest 7-Year Supply.