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Modesty Cheaper In Light Session

US TSYS

TYH3 deals +0-01 at 113-28+, just off the base of its narrow 0-06+ Asia-Pac range, on volume of ~71k.

  • Cash Tsys trade 0.5-1.5bps cheaper across the major benchmarks, with some modest bear steepening in play.
  • Spill over from ACGs in post-RBA trade helped apply some light pressure, as did reports of the Philippines seeking proposals for a multi-tranche round of USD-denominated bond issuance.
  • Participants looked through Covid headlines from China as Bloomberg reported that Beijing would become the latest city to relax restrictions related to testing requirements for entry into some public spaces.
  • Looking ahead, there is a thin docket in Europe today, with German factory orders providing the highlight there. The New York calendar is equally limited and will be headlined by U.S. trade balance data.

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