Modest Cheapening Early On after Wednesday’s Richening
Asia-Pac participants once again start the session by fading net price action seen in the session prior, taking 0.5-1.5bp out of yesterday’s richening, dependent on which point of the curve you look at, with the 7- to 10-Year zone leading the move. The size of those moves is somewhat shy of the double digit bp richening witnessed across the curve on Wednesday.
- TYH3 deals in a narrow 0-03 range, last -0-06 at 114-31.
- Broader macro headline flow remains light thus far.