Narrow Ranges For Futures, Cash Re-opens In London

TYH3 deals at 111-07, +0-00+, operating in a narrow 0-03+ range on volume of ~83K.

• Cash Tsys remain closed due to the observance of a national holiday in Japan, re-opening in the London session.
• NY Fed President Williams was on the wires early in the session, he noted that the Fed is absolutely committed to a 2% inflation target, bringing little new to the policy debate as he cautioned that any moderation in inflationary pressure may not be as swift as hoped in the coming months.
• There was some very modest Asia-Pac pressure as cross-market flows from Antipodean rates spilled over, however there was little follow through, with liquidity hampered due to the cash closure.
• Ranges remained tight with little follow through on moves.
• This came after the minutes of the February FOMC meeting pressured Tsys off of best levels late Wednesday. The minutes noted that "a few" members supported hikes greater than 50bp. Rhetoric surrounding financial conditions provided a hawkish tinge.
• Eurozone GDP headlines the docket during the London morning. Further out we have U.S. GDP and Initial Jobless Claims. Comments from Atlanta Fed President Bostic and SF Fed President Daly will cross. We also have the latest 7-Year Tsy supply.