Narrow Ranges In Asia

TYU3 deals at 113-04+, -0-02+, with a 0-05 range observed on volume of ~65k.

• Cash tsys sit little changed from opening levels across the major benchmarks.
• Tsys were a touch firmer in early dealing as Asia-Pac participants faded yesterday's cheapening, which was driven by spillover from the Bank of Canada's rate hike, perhaps using the opportunity to close short positions/enter fresh longs.
• Spillover pressure from ACGB's saw tsys retreat from session highs however there was little follow through on the move. Narrow ranges were observed for the remainder of the session and little meaningful macro newsflow crossed.
• FOMC dated OIS price ~9bps hike into next week's meeting with a terminal rate of ~5.30% in July. There are ~25bps of cuts priced for 2023.
• In Europe today the final read of Eurozone GDP and Employment crosses. Further out we have Initial Jobless Claims and Wholesale Trade crosses.