Narrow Ranges In Asia

TYU3 deals at 109-25, -0-04, a 0-05+ range has been observed on volume of ~105k.

• Cash tsys sit 1bp cheaper to flat across the major benchmarks, light bear flattening is apparent.
• Tsys trimmed some of yesterday's gains in early dealing, there was no obvious headline driver for the move which came alongside the USD firming from session lows. Perhaps participants are looking ahead to Fed Chair Powell's speech on Friday, using yesterday's richening as an opportunity to enter fresh short positions.
• The early move lower didn't follow through and tsys observed narrow ranges for the remainder of the session. There was little meaningful macro news flow.
• There is a thin docket in Europe today, further out we have US initial jobless claims and durable goods. Kansas City Fed’s annual economic policy symposium in Jackson Hole begins. Fedspeak from Philadelphia Fed President Harker and Boston Fed President Collins will cross. The latest 30-Year TIPS Supply is also due.