Narrow Asia Trade

T-Notes +0-00+ at 133-08+, sticking to the confines of a 0-02+ range in Asia dealing, while cash Tsys sit unchanged to ~0.5bp firmer on the day. There has been little to note on the headline front, outside of hawkish reutterances from Dallas Fed President Kaplan, who pointed to a need to get underway with tapering in October. A 5.0K block buy of TYV1 134.00 calls headlined on the flow side.

• To recap, Tsys looked to the downtick in equities on Wednesday, which provided support, as the space finished a little off best levels of the day. 10s led, richening by ~3.5bp come the bell, as participants looked through another deluge of $IG supply. The latest round of 10-Year Tsy issuance was well received, stopping through WI by 1.4bp, with the cover ratio moderating a touch vs. the prev. auction, but still holding above the recent average. Dealer takedown nudged higher but remained comfortably below the recent average. The Tsy space moved to best levels of the day in the wake of the auction. Fedspeak from Williams provided little new and was largely in step with commentary from Chair Powell re: the labour market, resulting in no tangible market reaction.
• Thursday will bring weekly initial jobless claims data & 30-Year Tsy supply, while the latest ECB monetary policy decision will garner attention. We will also get plenty of Fedspeak, with Bowman, Williams, Evans & Daly all due to make addresses (although some may not comment on monetary policy).