Modestly Firmer

TYU2 has operated in a 0-04+ range thus far, last +0-01 at 118-25+. Cash Tsys run 0.5-1.5bp richer across the curve in early Asia-Pac dealing after the belly was at the fore of the cheapening observed on Wednesday. There hasn’t been much in the way of concrete macro headline flow to drive price action thus far, with most of the focus falling on reports in the Chinese state-owned media sphere re: the likelihood of deployment of extra debt to boost infrastructure investment, which most were expecting. One of the reports suggested that the announcement of such a move could come during Q3 i.e. at some point over the next 6 weeks.